The report describes a mechanism of industry, university, and government technology collaboration, which has played an important
role in bridging the innovation gap in Germany, and is now establishing a presence in the United States. The German innovation system that gave rise to the Fraunhofer Society is reviewed and the dynamics of the Fraunhofer Model are described with the factors resulting in its internationalization strategy.
Link
http://www.technology.gov/Reports/German/fraunhoferbook.pdf