Analyzing the evolving landscape of higher education, the article looks at historical, political, and contemporary challenges. It highlights the global impact of innovation doctrines over the last fifty years, and their influence on public policy and societal structures, and especially higher education. It highlights the major shift in the dominant regime of knowledge production that has taken place over the same period, leading to the dominance of the entrepreneurial university, utilitarian knowledge and “strategic research”. This transformative paradigm has led to the conceptualization of the “third mission” of economic and societal development. By examining European and national programs such as the Excellence Initiatives, the article shows how universities are adapting while contributing to national innovation systems. The analysis reveals different perspectives on knowledge production, emphasizing rationalization and productivity while highlighting the complex consequences of societal activities on their production and environment.