AbstractPolicy research on the interaction between industry and public sector research (PSR) has tended to focus on institutional mechanisms and has been more descriptive than analytical This paper outlines a research design which seeks to avoid these failings. It investigates the extent, nature and reasons for links between industry and PSR in terms of the linkage activity by which private- and public-sector researchers interact, and the associated knowledge flows: the latter element is novel It analyses the PSR contribution to innovation in the context of all the knowledge used in the course of innovative RD&D. The conceptual basis of this research design is outlined and the methodology is detailed The approach has potential value both to public policy and to an enhanced understanding of industrial innovation.