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Describes work currently being done by the Leeds Metropolitan University (LMU) in action‐based learning and its use in the development of graduates and regional industry. Examines a pilot scheme – the Company Associate Partnership Scheme (CAPS) – which aims to increase the employment of graduates within small businesses. This, it is hoped, will enable companies to introduce strategic change projects. Includes observations of LMU associates, companies involved, academic institutions and the Department of Trade and Industry. Concludes that the greatest challenge for associates is managing the integration of academia and industry to form a learning partnership.

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