This thesis examines the barriers, especially intellectual property rights concerned that inhibit industry academia collaboration. By analyzing Swedish firms in the engineering industry, I explore the influence of IPR barrier on firms’ benefits, short- and long-term respectively from university-industry interaction. Three hypotheses are suggested to investigate the relationship between IPR barriers, firm categories, short-term benefits and long-term benefits. The results illustrate different firms’ reactions to IPR barriers. According to the analysis, advanced firms are more likely to report IPR barriers. Moreover, they tend to benefit more in the long run. However, the short-term benefits from UI collaboration seem to have no significant relationship with IPR barriers. There is hence no proof in the data that IPR barriers are a significant hinder for firms to benefit from university-industry interaction.