Although, the process of the capitalization of academic scientific knowledge is not benign across university campuses, recent acceleration of the process have sparked debates in many circles. This debate mirrors two sets of issues-public versus private interests. While the discourse has shed some light on the socio-economic and political forces at work, it is not devoid of problems. The paper argues that the understanding of the university as a catalyst for the science-based knowledge economy should be built around the framework that the university like industry and government is responding to a wide range of socio-economic and political demands that cannot be delinked from each other. It contends that, in a period of an ever-increasing demand for science and technology, universities' as citadels of knowledge have through the capitalization of academic scientific knowledge become a catalyst for the science-based knowledge economy.