The article describes the structure and mechanism of a Very Early Warning System (VEWS) which was devel‐oped as a tool for the early recognition and transfer of new technology, affecting both present and future R&D activities in the pharmaceutical sector. The VEWS de‐scribed is concerned with the collection, interpretation, analysis, and exploitation of new data from the world‐wide scientific and patent literature, scientific meetings, government reports, and personal communications. Sys‐tems activities are grouped into four phases: data acquisition, data expansion, critical analysis, and data exploitation. Iterative processing of an expanding com‐puterized data base is a key feature of the system.