This statement is not at all true in engineering schools. At least when I went to school (Northwestern, '00), there were huge numbers of industry/academic partnerships and the innovation talked about in this article was pushed as the sort of thing it was expected for you to do after graduation, unless you had the misfortune to continue on for your Ph.D., which very few people did. Maybe that quote applies more to non-engineering schools?
Can other engineering-educated folks relate to his quote?