Your posted suggestion, of defining the best outcomes as immediate job success, would solidify a market practice of lowering fences between town and gown (viable during only the past 3 or 4 generations) as the only viable way forward for educational bodies that intend to survive.
Because I agree with your general statement that market situations lose relevance once legislated, I think the principle more naturally extends to mean:
It is better to consider how to keep universities, whether research institutes or liberal arts universities, as a distinctive part of "the whole spectrum of techniques by which one generation transmits its insights and abilities to the next," Prof. Edsger Dijkstra's words. Not enshrine a set of commercial principles by which every piece of a spectrum must play.
Immediate job success is a fickle master; it would be a shame to LinkedInify any society. In 1996, Dijkstra said, [0]
> The University with its intellectual life on campus is undoubtedly a creation of the restless mind, but it is more than its creation: it is also its refuge. The University is unique in that on campus, being brilliant is socially acceptable. Furthermore the fabric of the academic world is so sturdy that it can absorb the most revolutionary ideas.
> But it is not only a refuge for the restless minds, it is also a reservation for them. It does not only protect the restless minds, it also protects the rest of the world, where they would create havoc if they were let loose. To put in another way, the fence around campus is essential because it separates two worlds that otherwise would harm each other. The fence ensures that we have relatively little direct influence on the world "out there", but we would be foolish to complain, for our freedom to be as radical as we like is based on the fact that, for at least the first 25 years, industry and the world-at-large ignore our work anyhow. Currently, there seems to be a world-wide tendency to try to lower the fence; the effort strikes me as ill-directed.
He had also been writing similar things in 1986 [1] and 1994 [2].
[0] https://www.cs.utexas.edu/~vl/notes/dijkstra.html
[1]
https://www.cs.utexas.edu/~EWD/transcriptions/EWD09xx/EWD988...
[2]
https://www.cs.utexas.edu/~EWD/transcriptions/EWD11xx/EWD117...