The origin and establishment of three innovative graduate institutions in the Boston, Massachusetts, area were assessed: The Arthur D. Little Management Education Institute, The Massachusetts General Hospital Institute of Health Professions, and the Wang Institute of Graduate Studies. These institutions started in non-educational institutions and were chartered as professional master's degree-granting institutions. Historical case studies supported by a participatory research design were used to determine how these institutions fit into the evolution of American professional graduate education, and specifically into the integration of theory and practice. Over 100 interviews covered institutional history, current status and future prospects, and the staff/student's relationship with the institution. Institutional contacts and documents were also consulted. Linkages common to these institutions included resources from the parent organization, the organizational connection to both parent organizations and respective industries; and linkage with their marketplace. The three institutions are compared concerning integration of theory and practice, as well as balancing demands toward industry (e.g., advancing technology) versus demands toward traditional university-based graduate education (e.g., accreditation). (SW)