This working paper reviews the background and experiences gained in the context of institutional co-operation between IDM in Tanzania and Agder College, Norway. This co-operation has evolved out of a long-standing relationship between IDM and NORAD. The current co-operation is funded by NORAD, is implemented in the mode of NORAD's "recipient responsibility" and is an example of NORAD's "Norway Axis" strategy. The specific purpose of the co-operation is to improve research quality and expand research capacity at IDM through joint research projects, as a means to strengthen IDM's position in the Tanzanian market for the training and consultancy services. The two parties have established an elaborate, and apparently successful, structure for an equitable and mutually beneficial institutional co-operation. The research output, however, has so far been limited, but has provided IDM staff with opportunities for gaining research experience and upgrading research competence. To what extent these individual skills are sufficient to make a positive contribution to IDM's market position remain to be seen.