Since 1971, that is nine years after gaining its independence, Algeria has among some Third World countries formulated an ambitious Science and Technology (S&T) Policy. In the last few years, the relevant administrative structure has been completed by installing a centralised body at the highest level. Policy itself has changed very little, and remained in some aspects well behind developments in the structure. In this paper, the author intends to consider the evolution of both structure and policy of Algeria's research and development (R&D); and the extent of their coherence or harmony and their linkages with industry.Even though structure and policy are the key factors affecting R&D effectiveness of a country, no significant success could be achieved without strengthening the relevant network allowing for the technical competence to be used effectively. Hence, the main theme of the paper concentrates on Algeria's need to review its R&D system to allow both structure and policy to be effective or cause relevant activities to be integrated within the production system, build better technological capabilities, and work for a more efficient industrial development.