This chapter discusses innovation within the tourism small business sector and provides a case study of academic-industry research collaboration and knowledge transfer. Governments of many countries are interested in improving innovation in the tourism industry. Academics have important skills useful for developing innovative new products. However, collaboration between academic and industry partners is complex and difficult to effectively operationalize. A thriving and innovative new experience for Chinese tourists to Australia’s Gold Coast provides evidence of the characteristics of collaboration needed for successful academic-industry innovation.

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