Industrial Research Laboratories are organized to make the best use of and to motivate scientific and engineering manpower to attain the goals of industry. In doing so they have developed a variety of personnel practices which do not always aid industry in its utilization of scientific manpower. Actually, industry's failure to use its scientific manpower effectively has left its research with unsolved problems and an inability to effect some of the recommended solutions in this field. Both the problems and their solutions are much more complex. They involve not only greater knowledge of Research and Development (R&D) organization than exists at this time, but greater sophistication on the part of R&D management in the comprehension and implementation of such knowledge. This article concerns itself with three problems: The present personnel practices in industrial research; The ways in which scientific and engineering manpower utilization may be improved; Why the recommendations that have been made thus far for the improvement of scientific and engineering manpower utilization have not been generally implemented.