The increase of entrepreneurial activity within academia has raised concerns that the research orientation of universities might become 'contaminated' by the application-oriented needs of industry. Empirical evidence on this concern is scarce and ambiguous. We examine whether entrepreneurial and scientific performance in academia can be reconciled. Our empirical findings (KU Leuven, Belgium) suggest that both activities do not hamper each other; engagement in entrepreneurial activities coincides with increased publication outputs, without affecting the nature of the publications involved. As resources increase, this interaction becomes more significant, pointing towards a Matthew-effect. We finally suggest that balancing both activities further depends on the institutional policies deployed. (C) 2003 Elsevier B.V. All rights reserved.