Abstract: Institutionalizing the deepening of industry-university integration within entrepreneurial universities at the local level is inherently driven and exhibits a high degree of consonance with the needs of government, enterprises, and the universities themselves. However, amidst the interactions between these locally oriented entrepreneurial universities and multiple stakeholders such as government bodies and the market, an uneven distribution of power and resource allocation among various elements engenders a multitude of challenges for the practical implementation of such integration. It is imperative to establish a virtuous interactive relationship between these universities, governments, and businesses by enhancing service functions and evaluation systems to refine macro-level administrative supervision; fostering collaborative frameworks founded on co-construction and shared benefits, thereby stimulating corporate motivation for partnership; and effectuating comprehensive reforms within the higher education institutions that underpin the establishment of enduring cooperative mechanisms, ultimately augmenting the efficacy of industry-academia synergies.