Three well-known forms of university-industry collaboration (research parks, cooperative research centers, and industrial extension services) were examined, along with the federal role of stimulating cooperation. The objective was to develop information and guidelines to help policymakers in designing new or revised federal initiatives to promote cooperation. For each type, the General Accounting Office investigators identified: how the needs and resources of university and industrial participants are joined, the types of links and outcomes likely to be enhanced, the critical factors involved in creating and sustaining the arrangement, and the federal roles that have been facilitative. It was concluded that the Federal Government has played a significant role in promoting each type of institutional arrangement by providing: support of basic and applied research at universities to build excellence in science at the frontiers of industrial technology; contract support for research and development (R&D) at spin-off high technology firms; seed money to stimulate creation of cooperative R&D centers plus continuing project support by grants and contracts; and both seed money and continued funding of extension services. Six suggestions regarding federal policy initiatives are included. (SW)