Abstract The biopharmaceutical industry has been undergoing change for a number of years and that change is accelerating. Larger pharmaceutical companies are acquiring smaller ones, companies are merging, laboratories are being closed, and the number of scientists performing research in the pharmaceutical industry is declining. Overall, commercial industry, including the biotechnology industry, is becoming more interested in the benefits of collaboration with research institutions.Universities are also changing their view of relationships with industry. Shrinking federal budgets are causing universities to look at other sources of revenue, including collaborations with industry. Federal and state governments are also looking closely at the benefits of sponsoring university research, and in particular are seeking to accelerate commercialization of university discoveries not only to obtain the benefit of invested research dollars, but also for economic development and job growth. Universities, and in particular university technology transfer offices, must understand these changes and adapt to them. This paper discusses the university/industry relationships, and the particular issues important to universities which shape that interface.Â