This paper explores the role of research universities in creating radical new products. Existing activities include cooperative research, entrepreneurial activities, technical publications and student training. While each of these activities are valued endeavours, none of them address the scope of issues confronting the task of commercialising technology. Industry and universities operate at different levels in the development process. Industry difficulties and needs are examined and found to be inconsistent with present university activities. The need for universities to develop the capacity to create product concepts and business plans is explained. (Publication abstract)