International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) 50 EXISTENCE OF AND BENEFITS FROM LINKAGES BETWEEN UNIVERSITY AND INDUSTRY IN ETHIOPIA A.S. KANNAN Assistant Professor in Finance and Accounting College of Business and Economics Dilla University Email: ProfessorKannan@gmail.com ABSTRACT Set with the objectives of assessing current status of partnership between higher education and industry, and identifying the nature and extent of linkages, the benefits accruing out of such alliances, this research was carried out by conducting a survey and interviews among the randomly selected respondents from both entities. The study was confined to Dilla, the zonal capital of Gedeo in SNNPR State in Ethiopia. 53 institutional responses and 60 industry responses were found to be in order. Following were the major findings from this study: (i) linkages in the areas of “employment support”, “academic and research support”, and “business relationship” existed; (ii) both would benefit from such linkages; (iii) major benefits accruing to higher institutions were the ability to produce industry-fit candidates, feasibility to research and solve real-life business problems, and ability to enhance manpower quality and employability; and (iv) major benefits accruing to industry were increase in productivity and service quality, technological innovations leading to improved performance, and reduction in training costs. Recommendations included (a) technical sessions with industry experts; (b) data bank on available practitioners; (c) encouragement to take up real issues for research; (d) setting up Industry-Institute-Partnership-Cells; (e) industry coming forward to sponsor; (f) liberal contribution of funds and data for research; (g) tax exemptions to research fund contributions; and (h) Education Ministry assigning weights in affiliation processes to alliances forged. KEY WORDS Industry-Institute Partnerships, Ethiopia, University Linkage with Industries, Benefits of Linkages. INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN MANAGEMENT (IJARM) ISSN 0976 - 6324 (Print) ISSN 0976 - 6332 (Online) Volume 3, Issue 2, July-December (2012), pp. 50-62 © IAEME: www.iaeme.com/ijarm.asp Journal Impact Factor (2012): 2.8021 (Calculated by GISI) www.jifactor.com IJARM © I A E M E