This paper examines the succession of formal and informal channels of university-industry knowledge transfer, and the local economic impact of their dynamic interaction. To do so, we investigate a highly cited university patent over an extended period of time through a case study methodology. Our work provides three fundamental insights. First, local economic impact can be achieved only after a complex, temporally unfolding sequence of interactions between formal and informal channels of knowledge transfer. Second, in the course of this dynamic interaction, knowledge generated during formal transfer activities may be transferred via informal channels. Third, the method developed can provide information on the variety of knowledge transfer channels related to highly cited patents.