This report is a study of the training implications of technological change in manufacturing in Yugoslavia. Part 1 analyzes the general technological and educational infrastructure in Yugoslavia. The sources of technology as well as the present state and future prospects of technological research are described. Education is discussed in terms of its response to technological change. Part 2 contains five case studies of firms that were developing or introducing new technology on a considerable scale. Each study is presented in two sections. In the first, problems and findings are given. In the second, conclusions are reached and certain International Labour Office hypotheses are tested. Part 3 presents generalizations based on the case studies, including the following: firms greatly affected by technological change have a good production and marketing record; personnel skills and abilities influence strongly the successful introduction of new technology; the government does not actively support innovation; the current economic situation hinders expansion and development of the educational system; industry plays a strong role in determining educational curricula and in the enrollment policies of universities; and the companies have good connections with foreign firms for cooperation, acquisition of technology, technical backup, and some training. (YLB)