There's a flywheel effect to academic research where good professors -> interesting discoveries -> grad students spin out and start companies -> economic growth -> good jobs -> halo effect for university -> more students, more budget -> better professors. That's how Stanford, MIT, and Harvard got to be so dominant. They spawned a whole ecosystem of startups and tech companies around them.
"Good professors" is a necessary but not sufficient condition to getting this flywheel going. You also need public/private partnerships to commercialize discoveries; a reasonably attractive urban area that'll keep students there; availability of venture capital; and a fair bit of luck with the initial batch of startups. But if you don't have decent teaching & research programs you're taking yourself out of the running entirely.
"Good professors" is a necessary but not sufficient condition to getting this flywheel going. You also need public/private partnerships to commercialize discoveries; a reasonably attractive urban area that'll keep students there; availability of venture capital; and a fair bit of luck with the initial batch of startups. But if you don't have decent teaching & research programs you're taking yourself out of the running entirely.