Despite the expectation of various advantages, university-industry research collaboration (UIC), a relationship between two different worlds, often faces serious conflicts. The performance of UIC depends on the research partners’ strategies and institutional designs through which they seek to mitigate these conflicts and increase partner incentives. We pay special attention to the role of the university intellectual property (IP) policy, formally introduced to Japan in 2003, as the basis of UIC contracts and empirically examine its impact on the performance of UIC projects, considering the factors in firms’ participation in UIC. We argue that the university IP policy that is equitable in sharing revenue and royalty from innovative outcomes and applied flexibly according to the partner’s needs may contribute to improving project performance by enhancing the commitment of firms, and we test our hypotheses using a sample of Japanese firms obtained from our original survey. The estimation results support the hypotheses, although the mediation via the firm’s commitment only partially explains the relationship between the university IP policy and UIC performance.