This research paper examines the critical relationship between university intellectual property (IP) policies and innovation outputs, with particular focus on the Indian higher education and research landscape.  It investigates how statutory frameworks, judicial interpretations, and institutional policies collectively shape ownership, commercialization, and benefit-sharing of academic innovations.  The study adopts doctrinal legal research methodology, systematically analyzing Indian IP statutes, case law, regulatory guidelines, and university policy documents, while drawing selective comparative insights from international models such as the Bayh-Dole Act in the United States and European university IP regimes.  The analysis aims to identify gaps and inconsistencies between legislative provisions, judicial reasoning, and institutional practices, and to evaluate their impact on technology transfer, startup creation, and industry collaboration.  By highlighting tensions between centralized ownership and academic freedom and assessing the effectiveness of revenue-sharing and commercialization mechanisms, the study seeks to propose context-specific reforms for Indian universities.  Rather than offering empirical findings, the paper provides a normative and policy-oriented evaluation of university IP governance, contributing to legal scholarships and offering practical recommendations for institutional administrators, policymakers, and legislators.  Ultimately, it argues that well-designed, legally robust, and innovation-friendly IP policies can strengthen India’s academic innovation ecosystem while preserving its educational mission and public interest.