AbstractMany so‐called ‘technology transfer’ programs are based on the belief that the process is essentially one of communication rather than of innovation. As such, the designers and managers of such programs concern themselves with questions of how to transfer technology after it is already developed, rather than how to develop or adapt technology so that it is transferable. The net result, we believe, has been a very poor showing and a very low level of effectiveness. To design a successful transfer program one must develop a view of the flow of technology in an integrated innovation process, and this paper concludes with the presentation of a highly significant flow model in which the critical aspect is constant assessment of the non‐technological factors during the entire course of the innovation cycle–including those related to marketing, regulations, capital and human