Technologies are essential inputs in pursuit of the developmental goals of any country in particular the developing countries to achieve sustainable development and also have a crucial role to play in achieving the Millennium Development Goals. The majority of the local industries in Tanzania use turnkey plants and process machinery imported from abroad for specific production lines. The imported technology may not be completely fit to the local conditions and it is the duty of the R&D institutions to match it with the local needs and conditions. Therefore, one of the major corrective measures required is to promote technology development and transfer from local R&D institutions to industrial enterprises. This paper focuses on how technological capabilities were enhanced by R&D Institutions in the development and transfer of technologies and the results of the enhancement. The discussion of the findings is based on the preliminary data collected from questionnaires and interviews which was administered to R&D Institutions in Tanzania.