In this paper, we build a framework allowing for a systematic investigation of the fundamental issue: 'Which quantum states serve as universal resources for measurement-based (one-way) quantum computation?' We start our study by re-examining what is exactly meant by 'universality' in quantum computation, and what the implications are for universal one-way quantum computation. Given the framework of a measurement-based quantum computer, where quantum information is processed by local operations only, we find that the most general universal one-way quantum computer is one which is capable of accepting arbitrary classical inputs and producing arbitrary quantum outputs—we refer to this property as CQ-universality. We then show that a systematic study of CQ-universality in one-way quantum computation is possible by identifying entanglement features that are required to be present in every universal resource. In particular, we find that a large class of entanglement measures must reach its supremum on every universal resource. These insights are used to identify several families of states as being not universal, such as one-dimensional (1D) cluster states, Greenberger–Horne–Zeilinger (GHZ) states, W states, and ground states of non-critical 1D spin systems. Our criteria are strengthened by considering the efficiency of a quantum computation, and we find that entanglement measures must obey a certain scaling law with the system size for all efficient universal resources. This again leads to examples of non-universal resources, such as, e.g. ground states of critical 1D spin systems. On the other hand, we provide several examples of efficient universal resources, namely graph states corresponding to hexagonal, triangular and Kagome lattices. Finally, we consider the more general notion of encoded CQ-universality, where quantum outputs are allowed to be produced in an encoded form. Again we provide entanglement-based criteria for encoded universality. Moreover, we present a general procedure to construct encoded universal resources.