The content of this report is based primarily on an assessment of the activities and plans of large companies currently involved in various phases of instructional technology, on an extensive review of reports published on the subject, and on the knowledge and experience of the author with similar studies. The report examines broad areas of industrial technological advancement likely to occur in the next ten years. It notes that almost anything of a technological nature that is desired can be done. Examples are cited of specific new products to be expected. A number of factors likely to affect the nature and extent of change in instructional technology are examined. The report notes two basic factors required for innovation: recognition of the need for change, and a conviction that the proposed innovation meets the need on the basis of cost related to benefit. The final section of the report suggests some of the basic problems which hinder the use of instructional technology in meaningful ways in education. (JY)