Universities acting as catalyst for entrepreneurial activities are central to the phenomenon of academic entrepreneurship. Lack of appropriate academic entrepreneurship models has hindered the smooth transfer of knowledge/technology from university to industry in India. The study explores the synergy between the academia and industry through academic entrepreneurship which is crucial to develop a world class higher education system. This paper attempts to understand the processes and stages of academic entrepreneurship activities besides focussing on education and entrepreneurship in India. Further, it discusses a few models and frameworks which integrate academic entrepreneurship, economic development and education in developing countries. The paper concludes with the argument that it is essential to restructure education/research to enable its integration within the economy which nurtures entrepreneurship.