In the context of a knowledge-based agenda understanding the dynamics of the collaborative process between universities and industry becomes critical. This paper develops an analytical framework for examining the processes underpinning the collaborative capabilities of University Research Centres (URCs). Drawing on the lens of collaborative communities, this multi-level framework provides a useful basis for understanding in more detail the unique motives, relational dynamics and negotiated orders informing and shaping the formation and sustenance of research collaboration in URCs. Implications for the management of scientific and technical (S&T) human capital are discussed.