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Universities are widely regarded not only as teaching establishments but also as knowledge organizations that research to create new knowledge and innovation. As such, research collaboration is likely to play a significant role in improving and enhancing the research organization's potential. This paper presents the results from two case studies on managing knowledge through collaboration currently in use at two university research units. Initial findings indicate that (1) Collaboration provides access to a greater breadth and depth of research knowledge than pure in-house development. (2) Trust, commitment, and balanced mutual benefits among partners are main factors for successful research collaboration. (3) Well functioning communication channels supported by IT are necessary enabling tools for collaborating with remote partners. Therefore, university R&D units that have limited resources and wish to strengthen their research capability should implement strategies that aim at extending their research potential through collaboration with a variety of external partners.