This study examines the impact of spatial proximity factors on innovation outcomes from dedicated workspaces in university-industry collaborative programs through a mixed-methods approach with semi-structured interviews and surveys, focusing on five cases on Cornell campus: Cornell AgriTech, the Center of Excellence for Food and Agriculture (CoE), eLab, the Center for Life Science Ventures (CLSV), and Blackstone LaunchPad. The findings reveal two approaches to university incubator workspace design based on program objectives and target audiences. Business-ideation-driven incubators prioritize open-plan co-working offices to foster interaction and entrepreneurial development, while research-driven incubators emphasize laboratory-like spaces with specialized facilities for scientific exploration. In macro, the success of programs does not solely rely on geographical proximity or workspace scale but rather on comprehensive support, mentorship, and a conducive environment for collaboration and innovation. In micro, user feedback highlights the importance of recognizing creative efforts and building deeper connections among members to foster knowledge flow and continuous entrepreneurial development. In the future landscape of higher education campuses, a strategically located and thoughtfully designed university-industry collaborative workspace holds the power to cultivate vibrant ecosystems that transcend the traditional boundaries of university campuses. Such a workspace enables the growth of entrepreneurial ventures as a catalyst and fosters innovation at the intersection of academia and industry.