University and industry collaborative relationships are now widely practiced in many countries and are increasingly important in many developing countries. In today’s global business environment distributed knowledge is important. Collaboration is an attractive alternative to gain access to knowledge and open innovation. University and industry are two different institutions but when they collaborate it can become an important vehicle to enhance innovation through the exchange of knowledge. Academia-industry collaboration is becoming an increasingly important engine in innovation and entrepreneurship growth for both developed and developing countries. Several quantitative studies confirm a positive association between university-industry collaboration and innovativeness at the firm level (Webster and Etzkowitz, 1991; Webster, 1994). Cases of successful co-operation between universities Productive university-industry collaboration forms the very core of the national innovation ecosystem. According to (Meng, Li, & Rong, 2018) industry-university collaborations represent an evolving trend for the advancement of knowledge and new technologies. Industry partnerships give students and faculty additional funding. By striking up corporate partnerships, universities have more resources to undertake research, and they're able to diversify their research areas. The university-industry collaboration brings new prospects of research funds, real-world problems, and research challenges, and new ingredients in curricula development. The collaboration also creates innovation and provides national economic benefits. But in the context of developing countries, some challenges are hampering the cooperation between these two entities. For creating successful collaboration these challenges must be solved. This paper sets out the task of unveiling the dynamics of academia-industry knowledge transfer and analyze the framework of collaboration.