In the developing countries, research and technology organizations (RTOs) have a pivotal role to play in creating national innovation system (NIS). Due to a weak industrial and technological base and the competition induced by globalization of economies, these organizations assume the responsibility of initiating and establishing an innovation system by acting as an interface between R&D and production. RTOs envisage their role as a knowledge support system to the firms to enhance their competitive strength in the new knowledge-based economy. This paper focuses on the organizational efforts undertaken by the RTOs to transform themselves into knowledge generating and marketing organizations. The service, which RTOs provide today are based on their accumulated knowledge over the years. These organizational functions can be facilitated through various organizational processes and practices. Further, these very processes and practices have been analyzed to understand the effectiveness of RTO-client interaction, in terms of knowledge generation and delivery. The paper is based on an international study on “Benchmarking the Best Practices for Research and Technology Organizations,” coordinated by WAITRO.