<p>Research on university-industry collaboration has made significant strides, yet the critical aspect of addressing gender inequality within this relationship remains largely unexplored. The United Nations’ commitment to achieving gender equality in the workplace cannot be realized without addressing this issue. This study aims to provide practical solutions to the challenges posed by gender inequality in university-industry collaborations. The methodology adopted in this study was a systematic literature review using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 guidelines. The results of this study underscore the importance of achieving a balance in the entrepreneurial skills of both men and women to foster innovation in university-industry partnerships. Also, it identified key barriers women face in U-I collaborations which include a lack of financial resources/assistance; absence of a network within the innovation system; cultural, political, legal, socio-cultural, and technological issues; insufficient skills/education; bias in the workplace; and a lack of institutional support/access to information/knowledge materials. This study also emphasizes the imperative for increased opportunities and active participation of women in technology and knowledge transfer. It concludes by highlighting the fact that the rate of innovation is declining globally, gender balance in entrepreneurial skills is crucial for fostering innovation, women’s participation in innovation and entrepreneurship remains significantly low, but women develop better sustainable innovations. In addition, effective policy development, implementation, and monitoring play a pivotal role in fostering gender equality in university-industry collaboration.</p>