Partnerships between businesses and higher education are discussed from the standpoint of effects on higher education traditions, policies and practices; business productivity and competitiveness; and opportunities for leadership. Part 1, "Making Partnerships Work: Objectives, Approaches, and Strategies," by David R. Powers and Mary F. Powers, includes topics such as benefits of cooperation, cooperative approaches to education and research, reconciling differing needs of academe and industry, and establishing sound contracts and oversight procedures. Part 2, "Partnerships for Training: Putting Principles into Action," by Carol B. Aslanian, concerns providing contract training to organizations and identifying clients and developing program contracts. Part 3, "Partnerships for Research: Lessons from Experience," by Frederick Betz, covers reaching agreement on process, uses and ownership, and organizing and managing a cooperative research center. As a resource, the procedural rules and guidelines for West Virginia, developed by David R. Powers, are provided. Seven figures and 11 tables summarize selected data, and an index is provided. (KM)