Factors affecting the industry–academia collaboration: a case study of higher education institutions (HEIs) in Islamabad, Pakistan

Purpose The industry–academia collaboration (IAC) at the higher education level is greatly impacted by various factors. This study aims to investigate the factors influencing IAC in higher education institutions (HEIs) in Islamabad, focusing on educational interactions (EDU), academic entrepreneurship (ENT) and research-related interactions (RRI). Design/methodology/approach This study adopted a quantitative approach by forming research questions using a critical study of literature and collected data from 80 faculty members selected through stratified sampling across public and private HEIs through the survey method. Statistical analyses, including reliability tests, descriptive tests, correlation, ANOVA, multiple regression and multicollinearity, reveal that while all three factors significantly contribute to IAC, ENT emerges as the strongest predictor (β = 0.586, p < 0.01), followed by RRI (β = 0.194, p < 0.01) and EDU (β = 0.152, p < 0.05). Findings The findings indicate moderate engagement in educational initiatives such as guest lectures and field visits, but limited efforts in RRI and ENT activities. These factors explain 76.2% of the variability in collaboration outcomes. Key barriers include the lack of structured policies, insufficient funding and misaligned academic outputs with industry needs. This study highlights the need for a robust entrepreneurial system, targeted policies and strengthened collaboration frameworks to enhance IAC. Research limitations/implications This study is limited to the perspectives of faculty members from a small sample of HEIs in Islamabad, which may not fully capture the industry’s viewpoint, ignoring the viewpoint of industrial experts because of limited resources. Additionally, it does not address external factors such as government policies or global market dynamics. Practical implications This research contributes to the broader discourse on sustainable innovation and provides actionable strategies for bridging the academia–industry gap. Originality/value This pilot study provides valuable insights for researchers interested in a larger IAC. It also provides insights for HEI managers who want to understand the motivations of industry participants in RRI. These insights are not only relevant for Pakistan but also for other developing nations seeking to leverage IAC for sustainable innovation. This research contributes to the broader discourse on sustainable innovation and provides actionable strategies for bridging the academia–industry gap.