This is an empirical examination of the relationships between university-industry research interaction and industrial innovation. Specifically, it focusses on improved understanding of the process and key barriers and facilitators/incentives. The expected significance of this research is that it will help clarify the "cloud of indicators" or lists of "possible benefits" which have been posited for industry-university interaction and to identify a limited number of "key indicators" which can provide a basis for further research, implementation and decision-making. The specific objectives are: to develop a "Conceptual Flow Model" for the process of University/Industry Interaction and its downstream impacts on industrial innovation; to identify and develop key indicators and measures (scales, attributes) for events and conditions at each stage, including the stages of short term and longer term outcomes and impacts; to identify key barriers and facilitators which act at the various stages (some act at several stages) and to develop indicators and measures for them; and to collect data on indicators and barriers/facilitators from a small sample of universities and industrial organizations engaged in or attempting to develop collaboration in Science and Technology.