An assessment of the extent to which industry-university partnerships in doctoral education, which have become increasingly prevalent in the knowledge economy, have begun to penetrate the South African higher education milieu, is reported. The factors that motivate large industries in developing countries such as South Africa to invest in doctoral education are explored and the nature of these relationships is examined. The data indicate the ambivalent attitude of those in industry to doctoral education in South Africa: knowledge at PhD level is regarded variously as "desirable", "a luxury" or "superfluous", with industry in general preferring lower-grade skills. It is suggested that the low level of interest in doctoral education may relate, among other factors, to the "brain drain" of graduates as well as to the overall commitment to R&D in the country, which is low in relation to global benchmarks, forcing industry to conduct research and innovation further afield. (Contains 3 notes.)