Cross‐sector R&D collaboration, as exemplified by the Australian Cooperative Research Centre Program, is increasing in incidence due to government policies and corporate practices. While the benefits of such collaborations are widely promoted, the resulting relationships (typically involving companies, universities and public sector research agencies) can be difficult to manage so as to achieve beneficial outcomes for all partners. A management framework for establishing these collaborations is proposed. This framework is based on four tensions in cross‐sector collaborations, and it takes the perspective that knowledge created for mutual benefit is the common focus of these ventures.