THE JAPANESE AND THE WEST GERMANS HAVE DEMONSTRATED COMPETENCE IN RAPIDLY TRANSFERRING TECHNOLOGY FOR THE R & D LABS INTO COMMERCIAL PRACTICE. THERE IS OPPORTUNITY FOR SUBSTANTIAL IMPROVEMENT IN THE U.S. SYSTEM. TO ACHIEVE THIS IMPROVEMENT, AN ACTION AND AN IMPLEMENTATION PLAN IS NEEDED. THE GLCC TEACHING FACTORY INITIATIVE IS A POSITIVE STEP IN THE DIRECTION OF MITIGATING THE DISADVANTAGE IN THE TECHNOLOGY TRANSFER PROCESS. IT IS THE INTENT OF THE TEACHING FACTORY INITIATVE TO PARTIALLY FILL THE VOID THAT EXISTS IN THE PIPELINE FOR TRANSFERRING TECHNOLOGY BETWEEN THE BASIC/APPLIED RESEARCH ENVIRONMENT AND THE MARKET-ORIENTED COMMERCIALIZATION ENVIRONMENT.