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This paper analyses the role of university knowledge in the innovation processes of cultural industries. Most studies of cultural industries highlight the importance of locally clustered firms in innovation processes. Those that analyze university-industry collaboration focus on technological development or industrial R&D, but neglect cultural industries as objects of analysis. The paper addresses this gap in the literature while analyzing collaboration with university patterns and innovation processes of new media firms in Scania, Southern Sweden. The findings reveal that innovation, influenced by industry-academia collaboration, takes place not only in technology-based industries. Collaborative aspects of innovation processes go beyond R&D transfer and include joint competence building, changes in market concepts and new social corporate responsibility actions. This paper adds to the understanding of innovation processes in cultural industries by introducing the university as one more important actor in the knowledge exchange networks. [ABSTRACT FROM AUTHOR]