British academic institution inspiring eastern sultanate (6)
I believe the answer is:
brunei
'sultanate' is the definition.
(Brunei is an example)
'british academic institution inspiring eastern' is the wordplay.
'british' becomes 'br' (abbreviation for British).
'academic institution' becomes 'uni' (university).
'inspiring' is an insertion indicator.
'eastern' becomes 'e'.
'uni' enclosing 'e' is 'unei'.
'br'+'unei'='BRUNEI'
(Other definitions for brunei that I've seen before include "Ill" , "Sultanate in northwest Borneo" , "Commonwealth country" , "major source of oil" , "Rich sultanate in the South China Sea" .)