This research study explores the internal and external R&D activities of university and industry collaboration for educational innovation and industrial product development. We have conducted this study by reviewing secondary literature. The purpose of this research method is to highlight each process of university-industry direct collaboration, which starts from an idea and ends with the successful execution of a collaborative research project. The findings of this study suggest that university-industry (UI) collaboration relies on the university and its research group to propose new and original ideas and on industrial finance to help them successfully execute UI collaborative research. Following this, the research results will be transferred to the industry in accordance with an agreement between the university and industry under given local, national and international intellectual property laws.