This study examines what makes cooperative arrangements between industry and Technical and Further Education (TAFE) in Australia successful. A literature review highlighted the importance of the provision of high quality technical education that meets the needs of the client. A range of innovative or entrepreneurial examples of industry/TAFE cooperative arrangements were identified. Five case studies were examined: establishment of the Textile and Fiber Research Institute within the Melbourne College of Textiles; Regency College of TAFE Hotel School program to provide training for QANTAS flight cabin crew; establishment of the Building Industry Management Education and Training Center; conduction of skills audits by the Fremantle College of TAFE; and development by Australian Cement/Mudgee TAFE of a course to introduce adult learners to apprenticeships. Success factors identified in industry/TAFE cooperation included the following: (1) TAFE must meet the needs of the client and respond quickly; (2) industry must clearly define the training issues, if necessary, with TAFE's assistance; (3) both parties must develop a mutually beneficial working relationship; (4) TAFE staff need to be pragmatic, practical, and prepared to take calculated risks; (5) TAFE managers must develop an appropriate organizational culture which fosters innovation and quality in the products or services delivered; (6) TAFE must make the necessary investment in human resources; and (7) the skills and capability of the college must be actively promoted to industry. (Thirty-one references and the questionnaire are appended.) (YLB)