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In the knowledge economy that characterises the 21st century, universities are being required to adopt a third mission, in addition to their two traditional missions of research and teaching, namely transferring to market the technology generated from their research. This has been of particular importance in the advanced innovation - led economies, where Government policies and new types of institutions have emerged to facilitate and support the development. The text reviews the effectiveness of these measures before examining the situation in Egypt, a factor-driven economy, where policies have been introduced to encourage university - industry collaboration and technology transfer. The study, which is based on an analysis of the views of Egyptian experts, industrialists and Science, Engineering and Technology academics, as well as purposelessly - selected case studies of three university initiatives, concludes that the measures are only partly successful and there is a need for a coherent, comprehensive set of policies that addresses the various challenges involved. The study has relevance for academics, industrialists and government in Egypt and other factor-driven economies.