Governmental policies to promote academia-industry cooperation in Japan have been rapidly expanded in recent years. These policies alone, however, does not guarantee actual enhancement in technology transfer. What are the factors that impede technology transfer from universities to industry? A nationwide survey conducted by Tsukuba University in September 1999 has showed that details of most individual projects remain obscure because they were realized under personal connection of researchers with businesses. It has also revealed underdeveloped channels between universities and business companies, complicated procedural requirements that burden researchers involved, and restriction in hiring young researchers for commissioned research projects. A more fundamental factor is, however, that research results obtained in Japanese universities are generally less industry-oriented in comparison with situations, say, in the U.S. A suggestion to solve this problem is to recruit academic researchers interested in specific industrial needs and organize joint research projects involving the relevant companies. This must be complemented by incentives for universities for collaboration with industry and promotion of TLO activities.