Abstract
The Australian higher education sector is ranked as the third largest in the world, accounting for 6.2% of the world's total, based on the number of international students. Australian SMEs collectively represent over 99% of all enterprises, contribute 57% to the gross domestic product, actively engage in innovative activities and provide over 67% of total employment. However, a limited number of SMEs source their ideas or information from the higher education sector. Australia has one of the lowest levels of collaboration between industry and universities in the Organisation for Economic Co-operation and Development (OECD). This paper seeks to address the gap in the academic literature by providing a review of the SME and higher education sectors and by exploring collaboration and engagement options for these crucial sectors.