Can entrepreneurial universities help solve the global productivity crisis?

Advanced economies face a profound, silent crisis: The relentless slowdown in productivity growth. Since the mid-2000s, output per hour worked has decelerated alarmingly across major global regions, jeopardising future prosperity^[1]. This stagnation cripples economic growth, deepens inequality^[2], and strains vital public services^[3]. It fundamentally undermines our capacity for societal advancement. Addressing this crisis requires a concerted effort to revitalise productivity growth, ensuring sustainable and inclusive prosperity for future generations.

Canada’s situation highlights this urgency; a decade of declining productivity coincides with a staggering loss of 100,000 entrepreneurs in 20 years^[4]. While past efforts have fallen short, the Bank of Canada recently emphasised the urgent need for a systemic fix^[5]. Rebuilding Canada’s entrepreneurial class, particularly in high-growth sectors, is a cornerstone of this solution.

Why entrepreneurship matters for productivity growth

Entrepreneurship is one of the few engines societies have at their disposal to reignite productivity growth. The economist William Baumol famously underscored that when channelled toward innovation, entrepreneurship becomes the primary force driving long-run economic development, technological advancement, and improvements in living standards for all, not merely entrepreneurs themselves^[6].

Innovative entrepreneurs do more than start companies; they disrupt stagnant systems, create entirely new markets, improve the effectiveness of established processes, and introduce technologies that amplify human potential. Entrepreneurship is also the main source of job creation. The work of entrepreneurs fuels the very productivity gains that modern economies now so desperately lack. Without a vibrant entrepreneurial sector, societies risk stagnation not just economically, but socially and institutionally too.

How entrepreneurial universities turn knowledge into action

This is where universities must step up. Entrepreneurial universities are contributors to the innovation economy, as well as stewards of productivity. In the past, universities have traditionally contributed to national productivity growth by generating research and advancing innovation. That remains vital. But today, the challenge is not only producing knowledge; it is about putting it to use. In an era of grand challenges and institutional inertia, we must also shape those entrepreneurs who can bring innovations to life in the corporate sphere, non-profit sector, and public administration, and of course in the new venturing domain. 

At its core, entrepreneurial thinking is about becoming an agent of change under conditions of uncertainty and limited resources. It is the capacity to identify opportunities, marshal resources, and pursue innovation, whether as a founder, a public servant, or a changemaker within a large organisation. When we teach students to think entrepreneurially, we are preparing them to renew systems, challenge inertia, and create public and private value alike.

Yet, in many academic settings, “entrepreneurship” still carries the baggage of being narrowly commercial. Some see it as a threat to the public mission of the university, rather than a means to advance it. We must change this narrative. Entrepreneurship, rightly understood, is not the enemy of the public good; it is its engine.

Three strategic shifts for entrepreneurial universities

To put diverse forms of entrepreneurship at the core of solving the stagnating national productivity problem, we recommend three strategic shifts for the universities:

1. Expand the definition of entrepreneurship to include intrapreneurship and social innovation as core components (rather than sidelines!) of entrepreneurial education.
2. Transform internal university systems to allow for more agile experimentation, bottom-up innovation, and institutional intrapreneurship.
3. Align incentives, resources, and recognition with diverse forms of value creation, supporting not just those who start companies, but those who rethink and rewire existing ones.

Intrapreneurship as a pathway to entrepreneurship

Our recent study, based on more than 170,000 individuals across 61 countries, shows that intrapreneurial experience (or leading innovation within existing organisations, whether private or public, commercial or non-profit) is a key gateway to subsequent independent entrepreneurship^[7]. People who engage in intrapreneurship are significantly more likely to develop entrepreneurial intentions and start ventures later on. This finding has two important implications for universities:

First, we must invest in developing intrapreneurial capabilities in students, beyond launching startups. That means embedding experiential learning, problem-solving under ambiguity, systems thinking, and cross-sector collaboration into our pedagogy. It also means recognising and celebrating student-led innovation that takes place within organisations, no matter the sector. Not every changemaker needs to launch a venture; some will transform existing institutions from within.

Second, universities themselves must become more conducive institutional environments, or places where intrapreneurship is both taught and practised. A university that enables its staff, faculty, and students to prototype new programs, challenge bureaucratic norms, and scale ideas across departments is living its entrepreneurial mission. As research shows, these conducive environments serve as fertile ground for future entrepreneurship.

Importantly, this broader view of entrepreneurship allows us to engage more of the university community.

Not everyone resonates with the startup vernacular, and not everyone should be expected to. But nearly everyone can connect with the wanting to improve the systems they are part of.

This opens the door to greater inclusivity, interdisciplinary collaboration, and alignment with the university’s public purpose.

Calgary’s entrepreneurial ecosystem in practice

The city of Calgary in Alberta, is a prime example of this mindset at work in building a thriving entrepreneurial ecosystem. Calgary has had the most significant increase in its technology workforce in all of North America^[8] (26,000 new jobs in the past 5 years). Venture capital growth in our city reached $630M in 2024, a 1,000% increase since 2018^[9]. And just last year, Calgary broke into the top 50 global emerging startup ecosystems^[10], creating local value ($8.1B) at double the global average. In the past month, the City of Calgary launched its first-ever Innovation Strategy^[11] and announced that its innovation and growth-focused Opportunity Calgary Investment Fund would receive a new injection of $60M after its initial $100M fund was fully committed earlier this year. 

At the University of Calgary, our selection as the Canadian hub for the XPRIZE^[12], the first-ever non-U.S. XPrize Foundation location, demonstrates this shift towards embracing entrepreneurship in all its forms. The Foundation empowers students, researchers, and community partners to co-develop scalable solutions to humanity’s pressing challenges such as access to clean water, affordable housing and non-polluting, abundant energy. It is a vivid example of how universities can serve as launchpads for intrapreneurial and entrepreneurial action outside the traditional boundaries of academia.

Measuring the impact of entrepreneurial universities

As university leaders, educators, and policymakers, we must champion an entrepreneurial culture that recognises value creation in many forms. This means measuring success not only in venture capital raised or patents filed, but also in public systems improved, equity expanded, and lives changed. It happens that the University of Calgary is home to the Hunter Hub for Entrepreneurial Thinking, Canada’s single largest post-secondary entrepreneurially-focused initiative. The Hub’s core mandate is to “build the best entrepreneurial talent pipeline in the country” by meeting entrepreneurs where they are along their journey. Open to all students, researchers, professors, alumni and staff, regardless of discipline or stage of development, initiatives like the Hunter Hub are so critical to a systems approach to rebuilding Canada’s entrepreneurial class.    

The entrepreneurial university of the future will not be solely defined by the number of startups it spins out, but by the number of changemakers it empowers, both within and beyond its walls. In a world hungry for solutions, universities must reclaim their role as launchpads not just for ideas, but for action.

Our global productivity challenge demands nothing less.

References

1. André, C., & Gal, P. (2024). Reviving productivity growth: A review of policies. OECD Economics Department Working Papers No. 1822 
2. OECD (2018) The Productivity-Inclusiveness Nexus. www.oecd.org/content/dam/oecd/en/publications/reports/2018/09/the-productivity-inclusiveness-nexus_g1g8b3ba/9789264292932-en.pdf
3. Bhatt, G. (2024, Sept 4) Sustained Economic Growth Hinges on Productivity Gains as Populations Age. IMF. www.imf.org/en/Blogs/Articles/2024/09/04/sustained-economic-growth-hinges-on-productivity-gains-as-populations-age
4. Business Development Bank of Canada (2023) Entrepreneurship in Motion: Skills to Succeed in a Changing World. 43224-skills-to-succeed-study.pdf
5. Rogers, C. (2024, Mar 26) Time to break the glass: Fixing Canada’s productivity problem, March 2024, Halifax Partnership, Halifax, Nova Scotia. www.bankofcanada.ca/2024/03/time-to-break-the-glass-fixing-canadas-productivity-problem/
6. Baumol, W. J. (2010). The Microtheory of Innovative Entrepreneurship. Princeton University Press.
7. Bogatyreva, K., Laskovaia, A., & Osiyevskyy, O. (2022). Entrepreneurial activity, intrapreneurship, and conducive institutions: Is there a connection?. Journal of Business Research, 146, 45-56.
8. CBRE (2024) Scoring Tech Talent 2024. www.cbre.com/insights/books/scoring-tech-talent-2024
9. CVCA (2024) 2024 Venture Capital and Private Equity Market Overviews. www.cvca.ca/insights/market-reports/q4-2024/
10. StartUp Genome (n.d.) Calgary Ecosystem www.startupgenome.com/ecosystems/calgary
11. Calgary Economic Development (2025) Calgary’s Innovation Strategy. www.calgaryeconomicdevelopment.com/assets/Reports/Calgarys-Innovation-Strategy-2025.pdf
12. XPrize (2025, May 6) XPrize Canada Hub launches in Calgary. www.xprize.org/articles/university-of-calgary-selected-by-xprize-as-home-of-new-canada-wide-hub

Ready for more?

What does it take to build a truly entrepreneurial university? This article is adapted from the Future of Universities Thoughtbook | Entrepreneurial Edition, which brings together 35 global thought leaders to explore how universities can foster entrepreneurial mindsets, transform institutional cultures, and turn knowledge into meaningful societal and economic impact.

Explore the teaser of the Thoughtbook for a glimpse into these perspectives, or access the full edition for free as a UIIN Member.

Oleksiy Osiyevskyy (author) is Professor of Entrepreneurship and Innovation at the University of Calgary’s Haskayne School of Business, where he leads entrepreneurship education and research on technology commercialisation, new venture development, and student entrepreneurship. Drawing on experience as an entrepreneur, investor, consultant, and start-up mentor, he connects academic insight with real-world innovation practice.
Guy Levesque (author) is Executive Director of the Hunter Hub for Entrepreneurial Thinking, where he helps develop the next generation of innovators and changemakers. Across a 35-year career, he has led initiatives that strengthened research, industry partnerships, entrepreneurship, and innovation ecosystems throughout Canada.