This research aims to improve knowledge exchange and innovation through collaborations between universities and industries in South-East European Countries (SEECs). The region benefits from better collaboration, and understanding factors such as proximity, motivations, and challenges is crucial. The study begins by suggesting that geographical closeness may influence the strength of university-industry ties and that specific conditions in SEECs may either support or impede these relationships. The paper proposes a new University-Industry Collaboration (UIC) model tailored for SEECs, built upon a review of literature from 2000 to 2022. This review examines factors like location, organizational approaches, types of knowledge exchange, key motivators and barriers, and the evolving role of universities in the region. The study introduces a specialized UIC model that could enhance regional cooperation, emphasizing strategies to overcome barriers and align university and industry goals. By extensively reviewing existing research, the paper contributes valuable insights into UIC in SEECs, aiming to deepen the understanding of these collaborations in the region.