Should university research be of practical value?

English: Original caption: "Trends in Research by Agency, FY 1995-2011, in billions of constant FY 2010 dollars. FY 2009 figures include Recovery Act appropriations. Research includes basic research and applied research." (Photo credit: Wikipedia)

As higher education dollars get scarcer and grants harder to get, the lines are being drawn between those who want closer ties with industry and those who argue for the merits of pure research.
Scientists protest shift to applied research in Canada:
http://chronicle.com/article/Shift-to-Applied-Research/144659/?cid=at
British researchers resist push to show impacts of their efforts:
http://chronicle.com/article/Researchers-Resist-Pressure-to/144533/?cid=at&utm_source=at&utm_medium=en
In Germany, University Watch scrutinizes the university-coporate interface:
http://chronicle.com/article/University-Watch-/144643/?cid=at&utm_source=at&utm_medium=en