Ways to develop and manage partnerships between colleges and industry are discussed. The broad educational, economic, social, and political contexts supporting such partnerships are reviewed, along with the important supporting roles of government and third parties. The dynamics of different partnership arrangements are examined, including philanthropy, procurements, linkages, exchanges, cooperatives, and joint ventures. Influences on the partnership are considered, including the diverse nature of the corporate world, and the transition to a global marketplace. Consideration is also given to high technology in a social context, education in a technological world, and the historical context for school business cooperation. The following six needs facing higher education are discussed: supporting faculty and graduate students, financing and utilizing basic research, upgrading facilities and equipment, maintaining the health of core programs, developing new patterns of education, and adapting organizational structures. The needs and interests of industry include human resource needs, and research and innovation. The management environment for a partnership and the negotiating and management of a contract are also discussed. A bibliography is appended. (SW)