European universities have been increasingly pressured since the late 1990s to make a more visible contribution to economic development. This policy interest has produced an increasing focus on knowledge transfer generally, and more specifically on measures to promote a research culture which values patenting and firm formation. This paper presents results from an interview study of academic faculty views on knowledge transfer and commercialisation at five public universities in Sweden. Our results show that, despite the retention of inventor ownership at Swedish universities, there is a high degree of knowledge transfer of all kinds. The overriding driver of entrepreneurial behaviour among faculty appears to be the low level of direct funding for research in universities. We find that attitudes to firm formation vary from positive to ambivalent, and that faculty from the humanities and social sciences engage in a higher level of entrepreneurial and policy adaptive behaviour than they report. We conclude that faculty at Swedish universities perceive the role of public servant and entrepreneurial academic as conflicting. This perceived conflict may be one reason for reluctance to report instances of commercialisation of research.