ABSTRACTThe purpose of this paper is to provide insight into government attempts at bridging the divide between theory and practice through university–industry research collaboration modelled under engaged scholarship. The findings are based on data sourced from interviews with 47 academic and industry project leaders from 23 large-scale research projects. The paper demonstrates a ceiling to the coproduction of knowledge arising from the preconceived beliefs of both academics and industry partners regarding project roles and responsibilities. The findings show that coproduction was constrained by academic partners assuming control over much of the research activities and industry partners failing to confront or challenge academic decision-making because both academics and industry partners placed a higher value on academic knowledge compared with applied or practical knowledge. It is argued the theory of engaged scholarship, and consequent initiatives to encourage engaged scholarship, fail to account for the superior status of academic knowledge.