The juxtapositioning of government providing a public good through research and development investment on one hand and engaging in commercialisation of the research outcome on the other is a paradox. Using agricultural research as an example, vje examine the nature of the paradox to determine if commercialisation potentially leads to a conflict in the role of public research institutions set up to fulfil public good responsibilities. We identify the reasons for the shift in policy towards commercialisation and greater exploitation of public sector intellectual property and how this has contributed to the emergence of the apparent inconsistency. We argue that the belief in working for public good is inherent and embedded in an organisation's history and its wider operating environment. We propose that the creation of public sector intellectual property and its commercialisation are influenced by the political, social and economic environment in which the public institutions operate.