Technology transfer and other public policy implications of multi-national arrangements for the production of commercial airframes

Abstract

A study to examine the question of technology transfer through international arrangements for production of commercial transport aircraft is presented. The likelihood of such transfer under various representative conditions was determined and an understanding of the economic motivations for, effects of, joint venture arrangements was developed. Relevant public policy implications were also assessed. Multinational consortia with U.S. participation were focused upon because they generate the full range of pertinent public issues (including especially technology transfer), and also because of recognized trends toward such arrangements. An extensive search and analysis of existing literature to identify the key issues, and in-person interviews with executives of U.S. and European commercial airframe producers was reviewed. Distinctions were drawn among product-embodied, process, and management technologies in terms of their relative possibilities of transfer and the significance of such transfer. Also included are observations on related issues such as the implications of U.S. antitrust policy with respect to the formation of consortia and the competitive viability of the U.S. aircraft manufacturing industry