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Report of the panel that identified barriers impeding the development and application of advanced industrial materials (AIM) and the diffusion of AIM knowledge. Recommendations were developed to overcome the barriers and implementation plans to effect the necessary change. The report covers university education, education of technicians and technologists, and the diffusion of AIM knowledge to the manufacturing sector. Each topic includes discussion of need, barriers, context, implementation, distribution, and follow-up. Appendices for each include summaries of reports commissioned and other relevant material used in discussions.