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Knowledge creation and transfer has emerged as one of the major determinants of economic development. Countries like Oman that currently depend on fast depleting oil and gas resources for development face the necessity of diversifying their economies to achieve longterm sustainability. The study in reviewing the mechanisms of the ISL process in many countries and theorising its determinants has showcased the importance of several factors which lead to successful partnerships between universities and firms. In determining the factors that lead to successful ISL process, the study has thrown light on the propagation of those factors so that knowledge development takes place through effective ISL. The ISL framework indicates that knowledge development and innovativeness occur under high degrees of economic diversification and organisational flexibility. It further focuses on the nexus between the universities and the firms and how the relationship may lead to a sustaining innovation system in a country. This book should be useful to researchers on ISL and policy makers of natural resourcerich countries.
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