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A product of the National Science Foundation's Program on Appropriate Technology, this paper discusses and presents an agenda for research on questions relating to technological innovation and the objectives of appropriate technology. The concept of appropriate technology is defined, the contrast between appropriate technology and current industrial technologies is outlined, and the institutional mechanisms in the American economy occupying the middle ground between appropriate technology and the practices of industrial technology are described. Innovation and its role in the appropriate technology context are then considered and the contrasts between appropriate technology innovation and industrial innovation are reviewed. Problems facing appropriate technology innovation are also addressed, and an examination of the various perspectives for understanding appropriate technology innovation (i.e., research and development, social interaction, problem solving, linkage, implementation, and delivery systems) are summarized. The four major categories for research on appropriate technology are then presented and discussed: (1) national appropriate technology issues, (2) federal appropriate technology programs, (3) innovation in appropriate technology businesses, and (4) use of appropriate technology. Three tables and three figures accompany the text. (Author/JL)