Graduate development programmes such as FUSION continue to be seen by policy makers, higher education institutions and small and medium-sized enterprises (SMEs) as primary means of strengthening higher education-business links and in turn improving the match between graduate output and the needs of industry. This paper provides evidence from case studies. The findings indicate that the practical application of academic principles in real-world settings provides a useful learning vehicle for academics, graduates and SMEs. Key success factors and strategies for overcoming obstacles emerged from the case studies. In light of these findings, the authors make tentative recommendations to aid the future delivery of similar programmes.