This paper explores how, in the light of global economic downturn and rising student populations, new academic-industrial models for research collaboration based upon specific technological expertise and knowledge can be developed as potential mechanisms for preserving and extending central university research infrastructure. The paper explores two case studies that focus upon the new serious games sector: the UK-based Coventry University's Serious Games Institute - a hybrid model of applied research and business, and the Netherlands-based TU-Delft University's Serious Game Center - a networked model of semi-commercial funding and public-private co-operation between industry, public sector and research partners. To facilitate these kinds of academic-industrial collaborations, the paper introduces the Innovation Diffusion Model (IDM) which promotes innovation diffusion by bringing academic and industrial experts into close proximity. Overall, the benefits include: sustained intellectual property development and publication opportunities for academics, employment creation, accelerated development and real commercial benefits for industrial partners.