The importance of planned applied research for proper development of industry is underlined. Attempt has been made to prove this point by comparison with some advanced countries. Suggestions are given by which small scale industries in Pakistan can be helped by the P. C.S.I. R. These are:- (a) Personal contacts with industrialists through the scientific extension service, the object of which is not only to educate the industrialists but also to advise them in connection with their problems; (b) Development processes which can be taken by small scale industries; (c) Development of pilot projects of industrial nature from which the small scale industrialists can benefit and take advantage; (d) Solving day-to-day problems and difficulties of the small scale industrialists; (e) Rendering advisory service to small scale industry in connection with their problems and providing information regarding developments in other countries in this direction; and (f) Publication of results of research obtained both within the country and abroad with a view to bring these to the notice of the local industrialists.