If it wasn't so sad, it would be funny. I've written about working with the Launch Pad program at the University of Utah. This program gave business school graduate students hands on experience evaluating new business concepts. They worked with the University's researchers first, and when there just weren't enough commercial applications, they worked with the community.
What a concept! The students learn hands on skills; the community benefits. Utah gets more tax dollars!
But they made a fatal mistake. The University's research on the whole was not of interest to the business community. The students turned their attention to concepts outside of the University.
So rather than have the researchers focus on becoming more desirable to the business community, they shut the program down.
This is a pretty severe case of ignoring the market environment. In the face of adverse conditions, rather than sticking to the original plan, maybe it's time to go back and re-evaluate those plans.
And maybe state run Universities should focus on programs to educate their students, rather than using students to drive revenue for the University.