From different aspects of development process, which attracted the attention of nations, is economic development. Experiences of nations show that, in addition to existence of consistency in the societys structures and interactions among different sectors economic development is dependent on industrial development. With rapid development in science and technology, the rate of industrialization increases dramatically, in the national and international levels. On the other hand, interaction of university and industry expedite science and technology development and their expedition, speed up economic and industrial growth. But industrial development is an issue, which depends on technology advancement. Based on Literature, technology advancement is not dependent just on-firm performance.It is affected by firms mutual relationship with universities and research centers. Firms, in order to be innovative, make ties with production ofknowledge side. If this kind of relationship is weak, technology advancement will occur very slowy.
In this paper, by ment systems and innovation models, indicators of natinal innovation system and developments in engineering education as an appropriate ground of technology an industrial development are mentioned. With reflecting the brief results of a field research in scientific and industrial sectors, the characteristics of such a systeme is show. Lastly, mechanisms for improvement of interactin between academic and industrial sectors and engineering education as a basis for technology development are offered