In the modern knowledge economy the development of collaborative research between industry and universities is critical to success. In Australia one mechanism for encouraging such collaboration is via the ARC Linkage Grant Scheme. Under this Scheme the Government funds collaborative research that also involves a contribution from industry and the universities. An interesting issue is the extent to which research-intensive organisation—that is organisations with high R&D and high IP assets (patents, designs, trademarks)—participate in the scheme. We analyse this issue using logit and probit models and find R&D to be a significant determinant. By contrast, we find IP assets to be insignificant. There also appear to be industry factors impacting upon the propensity to collaborate.