Linköping University (LiU), a young higher education institution in southern Sweden, has systematically built capacity for entrepreneurship and innovation. The University’s organisation as such is deliberately interdisciplinary in order to foster innovation: twelve Departments offer research and education to all of the University’s four Faculties. Two entities are dedicated to support entrepreneurial students and staff: the Project, Innovations and Entrepreneurship (PIE) division and LiU Innovation. PIE focuses on research and teaching, while LiU Innovation supports researchers, arranges contacts to trade and industry and other actors in the regional innovation system. Furthermore, a joint organisation named Student Innovation by LiU supports entrepreneurial students. Several remarkable spin-offs have emerged from LiU, and the combined turnover of spin-offs has increased steadily and strongly since 2005. LiU provides a good example of the role that a university can play in regional economic development. Entrepreneurial education, innovation and incubation at LiU contributed decisively to flourishing trade and industry in the Östergötland region.