This report discusses challenges and opportunities in assessing the impacts of science-industry knowledge exchange on innovation. The report provides new evidence on joint industry-science patenting activity and academic start-ups, as well as on the impact of geographical proximity between research institutions and industry on local innovation. The report explores the complex set of knowledge-transfer channels, such as collaborative research, co-patenting, academic spinoffs, and their relative importance across science fields and industry sectors. It also experiments with using labour force survey data to assess the contributions of graduates in social sciences to different industries. Different policy mixes are used in OECD countries to stimulate science-industry knowledge transfer. This report presents a taxonomy of 21 policy instruments, which include grants for collaborative university-industry research and financial support to university spin-offs, and discusses their possible positive and negative interactions. Based on a number of country case studies, the report also sheds light on new policy approaches to support spin-off creation. The report also explores recent trends on the governance of public research of high relevance to science-industry knowledge transfer using newly developed policy indicators for 35 OECD countries.