This paper examines the challenges and strategies of twenty-three Japanese universities working towards the improvement of employability skills. These universities have been selected for the national project “Improving Higher Education for Meeting Industrial Needs” funded by Japan’s Ministry of Education, Culture, Sports, Science and Technology. The purpose of this project is to improve the higher education systems that help develop employability skills that industry seeks by sharing their challenges and strategies in collaboration with companies. This paper analyses these challenges and strategies from the reports submitted by these universities for the preparation of the Second Conference of Industry-University Partnerships that took place in Nagoya, Japan on November 14, 2013. This paper concludes with discussion drawn from the reports and the conference.