Issues concerning a state policy supporting cooperative ventures among colleges and universities in Pennsylvania are discussed. It is suggested that a state policy encouraging successful interinstitutional cooperation must: avoid threatening the institutions, recognize that they must be the actual bargaining entities, inspire their interest through neutral mechanisms, educate leadership on what is possible and how to proceed, be almost universally supportive of ideas that reach maturity, and provide help to ensure thorough planning and legal completion. Models of cooperation that are drawn mainly from the private sector are briefly described: ad hoc agreements; consortia; affiliations; management contracts; program transfers; federations; holding companies; interlocking directorates; consolidations; acquisitions; reincorporations and dissolutions; and combinations, sequences, and sequels. Elements necessary to make ventures work are identified, including vision, commitment, and support. An example of cooperation between Philadelphia College of Art and Philadelphia College of the Performing Arts is included. Finally, five recommendations are offered, including establishing a low-cost confidential information and assessment service, and not subsidizing financially distressed or underutilized institutions. (SW)