The Uganda industrial researchinstitute (UIRI), a traditional incubator run by thegovernment, has made a significant impact by locatingvalue-added processing systems from its Kampala headquartersinto farmer communities. While the model lacks the necessaryinnovation development, UIRI offers small and mediumenterprise (SME) clients in these regions the opportunity toexpand personal income and existing businesses through localmarket development and value-added food processing. At thesame time, however, UIRI's traditional incubator hasbeen challenged to graduate incubatees who do not have thefinancial resources to stand on their own. UIRI has revisedits mandate, purpose, and organizational structure to betteraddress its mission and the country s industrial developmentstrategies. This has resulted in a more dynamic, flexible,and responsive organization geared towards: (a) technologydevelopment and transfer; (b) business development services;(c) industrial services; (d) pilot plants and prototyping;and (e) UIRI millennium science initiative (MSI).