Universities are an integral part of the skills and innovation supply chain for businesses that are multidimensional, sustainable, quality, and enduring in the long term. In pursuing this role, universities are encouraged to establish a university-industry cooperation (UIC) context that supports faculty and students to engage in business activities. Collaboration is very important for universities, because universities are not only research universities, but must reach the level of learning colleges. The results of the research found that implementing UIC regulations affected the performance of university academic innovation, it also found that the knowledge management mechanism was an important factor to improve the performance of university academic innovation, and the implementation of regulations also played a role in developing knowledge management and performance of university academic innovation.