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Innovation and quality are the twin engines of US competitiveness. They both relate to customer satisfaction and are enhanced by common processes. Argues that the Semiconductor Research Corporation (SRC) is a leading example of this. SRC has developed a research management methodology which combines technological innovation with total quality management. The ultimate benefit of the SRC’s research management activities is the timely and effective transfer of relevant, world‐class research results into its customers’ processes. Technology transfer and utilization then become the basis for customer satisfaction. The SRC has developed a concurrent management process and formalized the linkage between the transfer of technical innovation and quality in a technology transfer and quality (TT and Q) team. This team acts as both a steering committee for process improvements and a vanguard for all quality efforts by reflecting the customers’ primary concern with transferring technical innovation.