In the knowledge-based economy that characterizes the 21st century, universities are expected to take on a third task in addition to their two traditional roles of research and teaching: the transfer of technology resulting from their research to the market. This is particularly important in advanced, innovation-driven economies, where government initiatives and new types of institutions have emerged to facilitate and support development. The text examines the effectiveness of these measures before investigating the situation in Egypt, a factor-driven economy, where political measures have been introduced to promote collaboration between universities and industry and to enhance technology transfer. The study, based on an analysis of the views of Egyptian experts, industrialists, and academics from the fields of science, engineering, and technology, as well as intentionally selected case studies of three university initiatives, concludes that the measures are only partially successful and that a coherent, comprehensive package of measures is necessary to address the various associated challenges. The study is relevant for academics, industrialists, and governments in Egypt and other factor-driven economies.