This is a time of tremendous opportunity, but to remain competitive every business is finding it necessary to be much more entrepreneurial. At SRI International, this has resulted in a new model for research and development with a focus on creating and delivering high-value solutions to the marketplace. For example, SRI spins off three to five new high-technology companies each year. This talk will review key elements of our model and the entrepreneurial process needed to successfully form high-technology companies within a relatively large R & D organization. The issues and challenges of our model will be discussed and compared against the global trends we observe. Curtis R. Carlson became President and Chief Executive Officer of SRI International in December 1998 after 25 years with Sarnoff Corporation, an SRI wholly owned subsidiary. Carlson joined RCA's Sarnoff Laboratory in 1973. He was named head of the Image Quality and Perception Research Group in 1981, Director of Sarnoff's Information Systems Research Laboratory in 1984 and Vice President of the laboratory in 1990. In 1995, Carlson became Executive Vice President of Sarnoff's Interactive Systems Division. Carlson has published or presented more than 50 technical publications and holds more than 15 U.S. patents in the fields of image quality, image coding and computer vision. While at RCA's Sarnoff Laboratories, he was the recipient of two RCA Outstanding Achievement Awards. Carlson received his B.S. in Physics from Worchester Polytechnic Institute and M.S. and Ph.D. degrees from Rutgers University. He is a member of the Institute of Electrical and Electronics Engineers (IEEE), Sigma XI, Tau Beta Pi and the Society of Motion Picture and Television Engineers.