Managing paradoxes in university–industry collaborations: Knowledge and innovation mechanisms for sustainable transformation

University–industry collaborations (UICs) are pivotal for sustainable transformation; however, they often stall due to paradoxical tensions between academic and commercial logics. Adopting a paradox theory perspective integrated with institutional logics, this conceptual study develops a multi-level typology of UIC paradoxes—identity, performance, and organizing paradoxes. It maps them to solidify knowledge management and innovation mechanisms across the collaboration lifecycle (initiation, formation, operation). We demonstrate how bottleneck paradoxes can be synthesized rather than minimized through knowledge management mechanisms (e.g., sensemaking of interdependencies, shared vocabularies and data/knowledge architectures, and absorptive and dynamic capabilities) and innovation mechanisms (e.g., co-creation, open and collaborative innovation, ambidexterity, and meta-routines for iterative learning). We contribute to the literature with a multi-level, lifecycle-aware toolkit that reframes UIC governance from conflict mitigation to paradox orchestration, specifying how knowledge management and innovation mechanisms convert persistent tensions into complementary drivers of sustainable digitalization. Finally, we outline implications for capability-building, data/knowledge governance, and stakeholder engagement.