In a knowledge-driven economy there is a growing need for deeper and more productive interaction between higher education and industry. The full exploitation of knowledge requires strategies, incentives, appropriate systems and strong interaction between the transfer processes and the main processes in higher education. In a knowledge-based economy, knowledge is more likely to be created if there is collaboration on the potential applications. In such a knowledge creation process, the creation, dissemination and utilization of knowledge are carried out in quick succession or even simultaneously. Also, basic research and applied research can no longer be separated. Knowledge creation is, in many cases, achieved through long-term partnerships based on trust, commitment and mutual benefit. This paper explores ways of supporting and creating entrepreneurial activity in higher education. It studies the case of Satakunta University of Applied Sciences in Finland. (Contains 5 figures.)