The book is on a subject of growing importance. It is based on a research project financed by the University Grants Commission. At the outset, it deals with some conceptual aspects and the process of technological change, emphasizing that technological advancement is one of the major factors of economic growth. At the micro level, it describes R & D activity in selected industrial enterprises and points out as to how it can be strengthened. The study also covers institutional collaborations in under-taking R & D activity, pointing out that there is hardly any linkage between educational institutions and industry. This is followed by a discussion on the government policy relating to R & D. It raises broader issues regarding the technology policy of the government. Emphasizing the importance of R & D statistics, the study undertakes a critical appraisal of official R & D statistics and points out their limitations. It also makes a number of suggestions for improving and enlarging the scope of such statistics. At the end, it brings out the major conclusions emerging from this study. In the context of changing business environment in India as a consequence of shift in the government's industrial policy, the findings of this study assume considerable importance.