Securing the future: Why universities need to stay innovative and engaged

In this episode, we speak with Andrew Petter, former President and Vice-Chancellor of Simon Fraser University, about the challenges universities face today and why staying innovative and engaged with society is critical for their future. Drawing on his contribution to the Future of Universities Thoughtbook | Entrepreneurial Edition, Andrew reflects on why universities risk isolating themselves when they retreat to traditional models, and how engagement, entrepreneurship, and community partnerships can strengthen both their societal impact and their core academic mission.

You can read a summary below, and listen to the full interview in our podcast:

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Summary

From declining public trust to tightening budgets and shifting expectations about their role in society, universities are facing growing pressure. The question is no longer just how universities survive the present moment, but how they secure their relevance for the future. In this conversation with Andrew Petter, President Emeritus of Simon Fraser University, the discussion turns to a critical challenge facing higher education today: whether universities will retreat into traditional academic priorities or embrace a more engaged, innovative role within society. At a time when institutions are under scrutiny and resources are constrained, this shift may determine whether universities strengthen their societal value or risk becoming increasingly isolated.

The risk of retreating to tradition

Universities across the world are experiencing financial pressure and political scrutiny. Institutional leaders often prioritise immediate challenges by focusing on stabilising budgets and protecting long-standing academic activities.

Andrew warns that this instinctive response can unintentionally deepen the problem. When universities retreat toward traditional notions of teaching and research while reducing outward-facing initiatives, they risk becoming less visible and less valued by the communities they serve. Instead of reinforcing their importance, this inward focus may weaken their public legitimacy. The result is a paradox: actions intended to protect the university’s core mission may ultimately undermine it.

The “Petter Principle” and the isolation trap

Andrew describes this pattern as the “Petter Principle”. Inspired by the Peter Principle  in organisational theory, it highlights a counterproductive response to crisis within higher education.

When resources tighten, universities often cut back on community engagement, applied research initiatives, and partnership programmes. These activities are seen as secondary compared to traditional academic pursuits. According to Andrew, removing them can further distance universities from society.

Without meaningful engagement with industry, communities, and public institutions, universities struggle to demonstrate their value. This disconnection can lead to reduced funding, declining public support, and fewer opportunities to showcase the broader impact of academic work.

Why engagement is still seen as “peripheral”

A major barrier to change lies within the structures and incentives of academia itself. Academic promotion systems, research evaluations, and global rankings largely prioritise publications and citations over societal impact.

Many universities measure their impact not by what they do in society… but by how many publications are cited by other authors.

As a result, faculty and institutions may feel pressured to prioritise activities that align with these metrics, even if they do not fully reflect the broader contributions universities can make. Engagement, entrepreneurship, and community collaboration often remain undervalued because they are harder to measure within existing evaluation systems.

Universities as anchor institutions

Rather than retreating inward, Andrew argues that universities have an opportunity to position themselves as anchor institutions within their communities.

Anchor institutions are stable, place-based organisations that contribute to the social and economic wellbeing of their regions. Universities are uniquely suited to play this role due to their long-term presence, intellectual capital, and physical infrastructure.

The university as an enterprise has a huge opportunity to establish itself as an anchor institution that serves the community in many ways.

Through partnerships, applied research, community programmes, and open collaboration, universities can help address local and global challenges from environmental sustainability to economic development. In doing so, they also strengthen their own legitimacy and relevance.

From zero-sum to positive-sum thinking

Andrew argues that universities should move away from a zero-sum perspective, where engagement activities are seen as competing with traditional academic work.
Instead, institutions should adopt a positive-sum approach, integrating engagement, innovation, and entrepreneurship into the academic mission itself.

Entrepreneurship, engagement and innovation do not weaken academic excellence. They demonstrate it.

When embedded strategically, these activities enrich both teaching and research. They create opportunities for students to apply knowledge, enable researchers to address real-world challenges, and help universities demonstrate tangible societal value.

The future of universities will depend on their ability to connect academic excellence with societal relevance. Rather than retreating into traditional structures, institutions have an opportunity to redefine their role as engaged, innovative partners in the communities they serve. By embedding engagement, entrepreneurship, and impact into their core mission, universities can strengthen both their academic foundations and their public value.

Ready for more?

If Andrew Petter’s reflections on the future of universities sparked your curiosity, you can explore his ideas in more depth in the Future of Universities Thoughtbook | Entrepreneurial Edition. In the book, Andrew joins 34 other global experts from academia, industry, and policy who share their perspectives on how universities must evolve to foster entrepreneurship, innovation, and real-world impact.

UIIN members have full access to the complete Thoughtbook here, while non-members can download a preview here to discover some of the insights and ideas shaping the entrepreneurial university of the future.

Stay tuned for the next episode on this series and don’t forget to follow us on your preferred podcast platform!