This report describes activities, in its third year of operation, under the Federal program of technology transfer as provided by the State Technical Services Act of 1965. Field service programs were brought under way in 34 states and 1/4 of the states established formal regional programs. Congress extended authorizations under the State Technical Services Act for three more years. The Public Evaluation Committee conducted thorough investigations and submitted a preliminary report to the Secretary of Commerce. Forty-six states received matching grants for annual programs to provide such technical services as field counseling, reference and referral services, and educational programs; 20 Special Merit Programs, of regional or national significance, were funded. Effective working relationships with other government agencies concerned with technology transfer have been continued and enlarged. (Tables and maps are included; appendixes include program descriptions, publications, and lists of persons and institutions involved.) (nl)