This paper focuses on the increasing collaboration between industry and higher education, and argues for the need to acknowledge the different values of each. We start by examining the nature of values, making use of Isaiah Berlin's contention that ultimate values often come into conflict with one another because they are incommensurable. We argue that capitalist values within industry still prevail, despite the impact of environmentalism and post-Fordism. Within higher education traditional academic values, we contend, retain their dominance, despite the shift to a mass system and the cultural impact of postmodernism. These profound differences are manifested in collaborative courses and sponsored research. We conclude by considering the different purposes of higher education and industry, and argue that such differences should be acknowledged and respected in order to avoid destructive conflict where the interests of industry and universities meet.