The Institute for Prospective Technological Studies (IPTS), part of the Commission's Joint Research Centre, has published its annual report for 1994. The main tasks of the IPTS are: - Monitoring new developments in science and technology through its European Science and Technology Observatory (ESTO); - Strategic analyses of new areas of science and technology, accomplished for a range of clients including the European Commission and the European Parliament. During 1994, the IPTS continued to work largely along the lines of its pre-Fourth Framework Programme mandate. The last quarter of 1994 was, nevertheless, dominated by the relocation of the institute from its base in Ispra, Italy to Seville, Spain, and the preliminary redefinition of the Institute's mission profile in light of the stipulations of the Fourth Framework Programme. The 1994 annual report includes an overview of progress achieved in the establishment of the European Science and Technology Observatory (ESTO), particularly with regard to: - The development of tools for information collection, analysis and dissemination; - The development of a "Technology Watch" system for the monitoring and diffusion of information on science and technology at European level; - The development of an R&D projects information system aimed at providing a continuously updated picture of European R&D in selected research fields, as well as the facilities, funding and teams driving such projects (the "Qui Quod" Intelligent Interface system). The report also provides information on work undertaken by the IPTS in the following fields: - Global change; - Science and technology in regional development; - Energy; - Environment; - Transport.