The objective of this study is to analyze the factors affecting the university and industry collaboration (U-I collaboration) in open innovation environment in Guangdong province, China. A theory model of key influencing factors was adopted to evaluate the effectiveness of U-I collaboration in Guangdong. The results show that there is an increase of tie networks inside the collaboration in open innovation results in the increase of knowledge and technology transfer. However, the knowledge sharing is also determined by firm absorptive capacity as well as the management efficiency within the network. In addition, the joint responsibility is essential which can reduce the risk of management inefficiency in U-I collaboration.