Abstract:Effective collaboration between universities and industry is the key to build a solid base for increasing national productivity and generating new knowledge. In response to a surging demand of the society for strengthening technology transfer from public research sector, UK Government has established a supporting mechanism in recent years, mainly led by the Department for Business, Innovation Skills, to promote collaboration between universities and industry. Evidences show that a dedicated administration structure, flexible arrangements of public incentives with different orientations, and a feedback system in place are key factors in creating the establishment of effective collaboration. This provides us with hints in planning our related work in China, comprising government role design, funding streams allocation, performance evaluation, etc.