This article reinterprets a recentexploratory study of the academic freedom ofAustralian social scientists in an increasinglycommercialised university environment. Thestudy revealed that academics are experiencingseveral conditions that undermine academicfreedom: the intensification of work at theexpense of quality; pressure to choose `safe'research topics; the erosion of intellectualcapital and student standards; and increasingcorporate governance. We position thesefindings within the transition to `Mode 2'knowledge production, arguing that thisprovides a more appropriate basis forreconceptualising the traditional concept ofacademic freedom and renegotiating its socialpractice.