This paper describes research to examine the process of knowledge transfer between universities and industry, where the transfer of knowledge can be a valuable source of innovation for a company, in terms of new product development (radical innovation) but also as a source of knowledge for process or product improvement (incremental innovation). The view is adopted that the most useful knowledge for industry is knowledge that leads to action, known as tacit knowledge. However, tacit knowledge is seen as the most difficult type of knowledge to transfer. The paper builds on the research in this area of strategic knowledge management and uses case-study style research to review a framework that shows how knowledge can be codified for transfer, transferred and then assimilated. The paper concludes with comments about the use of the framework and directions for future research.