When the focus shifts to the bottom line, basic research always takes a hit.
Technology transfer is just a subset of knowledge transfer.
An interview with Lanny Liebeskind, Professor of Chemistry Show me the money . . . While universities pay some salary to researchers in the sciences, part of their salary and much of the cost of doing research is underwritten by agencies like the National Institutes of Health and the National Science Foundation. Typically, a faculty member or group of faculty submits a proposal to an agency where it usually undergoes a rigorous peer review. Far less than half of all proposals receive funding. Grants cover the cost of everything used in the research, like lab equipment and supplies, and also some of the indirect expenses, like facilities and administrative costs.