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Both universities and industry have much to gain from closer relationships based on their natural interdependence. IBM's direct support for U.S. higher education includes, for example, investments in younger faculty and graduate students, in leading academic departments, and in selected initiatives to respond to critical needs to strengthen American education and research in science and engineering. Many of the company's most important relationships with, and support for, universities, however, arise through collaborative research activities on specific problems of common interest. So long as academic freedom and goals are respected, collaborative research is an especially promising area which can bring industry's technical and applications strength into academia, and the creativity of the university environment into industry.