This project investigates: (1) recent changes in the nature and strength of the links between academic research and industrial innovation in various industries, (2) differences among small, medium-sized and large firms in the extent to which their innovations are based on recent academic research and in the ways in which they tap into, use, and interact with academic research, (3) differences between U.S. and foreign firms in the extent to which their innovations in recent years have been based on academic research, (4) factors associated with the successful transfer to industry of the knowledge and know how resulting from research carried out by universities, and (5) factors leading academic researchers to do work regarded by firms as being significant contributions to their product and process innovations. The purpose is to shed new light on each of these important topics. Building on our previous work in this area, data from firms in the information processing, electronics, chemical, instruments, pharmaceutical, metals, and petroleum industries is collected and analyzed as well as data/information from a sample of academic researchers who have been cited by firms in these industries as having made particularly significant contributions to their product and process innovations. Based on detailed data of this sort, statistical analyses will be carried out, the results of which should be of u se to decision makers attempting to increase the economic payoff from the nation's academic research.