This paper presents the importance of engineering research to the advancement of manufacturing industry. It identifies the problems in the research institutions and industrial sector. It notes that both sectors suffer from human and non-human challenges that militate against their service delivery and contributions to national development. Strategies for technological and industrial development are highlighted. Such strategies are expected to result in the development of endogenous technology that makes the best use of the local resources of a country. Technological collaborations between industries within a country on the one hand and overseas industries, on the other hand should provide good synergy that could hasten industrial development. The paper concludes that research-driven industries exhibit high efficiency, low consumption of resources, contribute to improved standard of living of the citizenry and overall growth in national economy.