- This report is the first result of a study concerned with the organisation and effectiveness of industrial therapy in psychiatric hospitals. It reflects the significant changes in the traditional views first, of the psychiatric patient and his relation to the community, and second, of the hospital itself as a social system. Industrial therapy provides a specific link between the world of the hospital and the world of work. It is not a mere diversion for patients otherwise unoccupied : it is a conscious attempt to create, within the once totally segregated hospital environment, a work situation as close as possible to that in the world outside. This report aims to provide the first step towards a comprehensive analysis of a major development in the field of mental health and rehabilitation.