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Abstract : The paper examines the circumstances that led to Japanese production of four U.S.-designed aircraft during the 1950's and 1960's, the flows of requisite technology and other goods and services, and the costs of transferring the technology. The history of this experience is instructive about the process and costs of one country's acquiring a sophisticated technical capability from another. Perhaps even more significant is a methodological implication to be derived from this study and others like it: that international flows of technology can be studied profitably by means of conventional market-force analysis. Such an approach can illuminate a number of the dark corners of economics and dispel some of the mystery concerning technology and economic change. (Author)
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