This paper presents the overall findings of a study of industry technology institution interaction in seven industrial sectors in India; auto parts, machine tools, foundry, pharmaceuticals, polymers, textiles and software. In analyzing the nature of interaction between industry and technology institutions we have used an organizational stage model of technological development at the firm level in conjunction with demand and supply side factors: technological capabilities of firms and the demand for technical services; and its capabilities and the supply of technical services. On the basis of our analysis we present some implications for technology institutions for enhancing their interaction with industrial firms.