This paper discusses the potential to upgrade the Thai innovation system by university-industry linkages. Our results are structured into three parts. First, the identification of potentials for university-industry linkages (UIL) within the Thai innovation system shows that the re is a wide gap between absorptive capacities of private companies and knowledge production of universities. Second, we present survey results for individual departments at Thai universities showing that UIL are mostly limited to consulting and technical services, hampered by mutual distrust, and maintained to receive an extra personal income. Third, case studies on four typical modes of UIL allow us to discuss various ways to upgrade the Thai IS by UIL in future.