the book is mainly focused on investigating the properties of locally recurrent neural networks, developing training procedures for them and their application to the modelling and fault diagnosis of non-linear dynamic processes and plants. the material included in the monograph results from research that has been carried out at the institute of control and computation engineering of the university of zielona góra, poland, for the last eight years in the area of the modelling of non-linear dynamic processes as well as fault diagnosis of industrial processes.