Most universities are nonprofits; universities tend to be research maximizing entities, with teaching as a distant second function.
There are institutions with teaching- (as opposed to research-) centric models, but they tend to do at most undergraduate, vocation, and/or professional education, not academic graduate education, and (somewhat ironically, in context of the comment above) tend to be far more likely to be profit-centric businesses.
This really hit home for me reading "Excellent Sheep" by William Deresiewicz. At one point, a professor won an award for excellence in teaching and I believe the dean took the professor aside to reassure them that the award wouldn't negatively impact their career. Apparently, the common wisdom was you could either prioritize research or teaching and that an award in the latter implied you may not be completely committed to the former.
What incentive is there for a private entity to openly publish valuable research in the first place? Except in certain unusual situations (monopoly justification a la Bell Labs, PR, patent applications), I would expect that private entity research results would be kept private by default so the business can maximally exploit it without assisting its competition.
There are many small colleges that are not research-focused. They teach. They make their money from tuition and gifts, and possibly other federal grants but not for research.
Said he tries to keep people from getting pulled into the academia meat grinder. The politics, the intense competition for research grants, constantly fighting for tenure, the lack of support in their research - he didn't see it as a worthwhile pursuit compared to going after outside, private research money or working instead in the corporate world.
I could tell he was pretty jaded, but out of the five professors in the department, only one encouraged me to stay at the university and pursue a career in academia. Considering where academia has gone since then, I'm pretty happy I took their advice.