[Marketising universities] rests on a fundamental misconception of the market and its functions: a misconception that could only be held by people who have not thought seriously about the market or its history.
The market itself, for example, rarely drives innovation; on the contrary it usually reacts. Entrepreneurs certainly have a sense of what might be profitable, but the market does not tell them what will and what won’t. They rely, largely, on guesswork; they put something on the market and keep their fingers crossed. There is no certainty in the market. Nor does it necessarily signal what needs to be done. The market did not synthesise penicillin or put communications satellites into the heavens or discover how cholera is spread. In many cases the market can resist innovation. Businessmen get set in their ways or simply make the wrong guess. Nor are consumers natural innovators. On the contrary they are often very conservative and have to be induced to change their habits by the enormous engine of advertising.
In Defense of British Universities
