This paper argues that the values of industry and higher education are incompatible and that imposition of industrial values on universities must necessarily destroy traditional academic values. Any dialogue between industry and higher education must grapple with this value conflict. The industrial ethic is based on unlimited growth, exploitation of raw materials, and penetration of more markets with minimal constraints on competition. The current decade has seen an increased awareness of environmental and societal issues with other trends perhaps signaling fundamental change. Although traditional elite university values of disinterested pursuit of knowledge in a collegial community may have little relevance to a post-modern era, traditional higher education values of creating an educated public and enhancing critical awareness to free minds and uphold democracy is still valid. Government intervention in higher education has promoted industrial values. In particular, in the United Kingdom, the Higher and Further Education Act of 1992 resulted in direct intervention in university teaching by setting up "quality assessment" committees under funding councils. This has brought the industrial language of quality control into the university. These trends may overlie deeper interests in political and social control of higher education. (Contains 26 references.) (JB)