TECHNOLOGY FOCUS - INORGANIC CHEMISTRY - Preferred Components: The graded composition layer includes metal oxides, metal nitrides and/or silicon oxides.    TECHNOLOGY FOCUS - POLYMERS - Preferred Components: The composition continuously changes in a vertical direction to form a gradient composition. The encapsulation thin film has a transmittance of greater than or equal to 85% in the visible region. The anchoring layer includes a polysiloxane of formula (1), polysilsesquioxane of formula (2), or polysilazane of formula -(SiR2'NR3')n'-.R1, R2=H, 1-3C alkyl, 3-10C cycloalkyl or 6-15C aryl group;orR1, R3, R2'=H, 1-5C alkyl, 2-5C alkenyl, 2-5C alkynyl, alkoxy, or 3-8C aromatic group where at least one of R1, R2, R2'=H;n=2000-200000;andn'=500-1000000.Preferred Properties: The encapsulation thin film has a light transmittance of greater than or equal to 85% in the visible region. Preferred Methods: The PVD process is carried out by sputtering, pulsed laser deposition (PLD), ion beam deposition (IBD) or ion beam assisted deposition (IBAD). The co-sputtering is carried out by varying radio frequency (RF) power levels at constant power and time intervals to form the compositional gradient of the graded composition layer. EXAMPLE - Organic-inorganic hybrid siloxane polymer (1.16 g) was dissolved in propylene glycol monomethyl ether acetate (3.87 g) to prepare a coating solution having solids contents of 23 pts. wt. The coating solution was spin coated on a 100 mu m thick polyethylene terephthalate substrate. The coating was heat cured by heating on a hot plate at 50 degrees C for 5 minutes and in an oven at 60 degrees C for 2 hours to form anchoring layer. Alumina-silicon dioxide graded composition layer was formed on the exposed surface of the anchoring layer in deposition system to produce a graded composition encapsulation thin film. The graded composition layer was formed by applying increased radio frequency (RF) power of 100-600W at constant intervals to alumina target, gradually increasing alumina concentration while decreasing RF power applied to a silicon dioxide target from 600-100 W at constant intervals to gradually decrease the silicon dioxide concentration during deposition. The thin film was evaluated and had total thickness of 78 nm. The anchoring layer had uniform thickness of 30 nm and was uniformly formed with no interface on the anchoring layer.