The main aim of the paper is to identify main barriers for technology transfer in several Iranian Industries. Iran with a special attention paid to domestic technology transfer. In the period under analysis, i.e. 1996-2002, no improvement took place in the field of technology-transfer processes in Iran. The poor state of TT is caused by existing obstacles/ barriers. According to the empirical research, the most nagging barriers are as follows: RD inefficient system supporting firmspsila innovation and RD difficulties in getting financial resources from outside the firms; lack of firmspsila own financial resources; lack of innovative culture and mentality among firmspsila employees. The lack of relevant communication between the Universities and industries lies at the root of all difficulties in TT processes. On the basis of this, recommendations are formulated for public policy for technology transfer.