(1)The underlying assumption in “technology transfer” is that the
application of new discoveries to the development of new technology by
the developed countries produces results which are applicable to
underdeveloped countries. Although this assumption has never really been
put to a true global test, it is by now clear that this cannot be the
main means of technological progress in developing areas such as Africa,
Southeast Asian and Latin America, irrespective of its possible utility
elsewhere. (2) The question is whether such an outcome is inevitable and
inherent in the process or whether it merely reflects the shortage of
resources and improper management. It is my contention that “technology
transfer” as a vehicle of progress for the developing countries is
irreparably flawed and cannot succeed.

Specific problems

Some of the questions to be think about and worth research stemmed from
the theory proposed are brainstormed as follows.

  • How can the government improve infrastructure (both hard and soft)
    in order to fit in the best growth strategy determined by the
    endowment structure of different economies?
  • Distortion
  • Wave Phenomena
  • Industrial Policy

The theory provides a new insights accounting for the economic success
of China and gave a new vision on the problems of structural
transformation that China is facing today.


As a regional jet, this aircraft offers a spacious and quiet cabin which
is comparable to that of a 150-seat trunk liner;

Basic principles

The new theory proposed that when thinking about economic growth, it
should be noted that economies in the different stage of development has
different structural characteristics. In contrast to the classic view of
two states of economy, the path is more of a spectrum. Generally, the
industries move from labor-intense/ resource-led economy to
capital-intense economies. The latter is more applicable to the
endogenous growth theory that Schumpeter gave, which emphasized the
accumulation of human capital, the role of R&D on technology progress
and industrial upgrading.
As the theory points out, the government should play a role in the
construction of infrastructure in order to reduce the friction and
transaction cost for the industries with the highest comparative
advantage, which are demonstrated in the context of competitive market.
However, it is crucial for the government to recognize the best way to
end the intervention so that the distortion would least affect the
stability in one way and the most efficient industries pertain
competitiveness without protection in another way.

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To be used as an economic transportation tool for major routes of
hub-spoke airports during non-peak hours;

Literature Review

Since the foundation of economics was laid by Adam Smith, the role of
free market has become a consensus among economists. However, the
oversimplified model given by the ancient theory did not pay attention
to the technology progress and structural transformation in the economic
development. Later when Rosenstein-Rodan defined the concept of
‘development’ as the virtuous circle of development depending
essentially on the interaction between economies of scale at the level
of individual firms and the size of the market, vast literature were
born to understand the structural rigidity and coordination failure
faced by developing countries. The role of government was emphasized in
different aspects. Rosenstein-Rodan promoted the big push, which
suggests that government should complement the information about
externalities in order to solve under-investment in the
pre-industrialization period. Nurkse saw the bottleneck in the domestic
market and Hirschman promoted the government to invest in industries
with highest potential. The theories were put into use by the
Latin-American countries but the outcomes were not as good.
Accompanied by the disintegration of Soviet Union and the crisis in
Latin-American countries, more and more economists realized that the
theories on big government do not work so well and the theory about free
market rose again.
Later the micro level studies emerged in this field. JPAL and RCT, for
example, tried to find solutions from the individual level but the
principles are hardly generated from the experiment and focus on the key
of the problems. Other work include World Bank (2005a), which research
the period of investment and enterprise performance, and Rosenzweig &
Wolpin (1985) on household savings and productivity.
In the context of so little empirical evidence for the theories, the
Asian miracles, whereas, provided some positive examples on how
government can serve as a complementary role to push economic growth
while give the free market the place to play a fundamental role. And
this is where the theory of new structural economics starts.


Product family:

Having taken the class of Professor Wang, I found my intense interest in
the topics of economic growth. In preparation of writing the research
proposal for the applications, I read the paper by Justin Yifu Lin and
would like to write about my own summary.
In the paper, Lin proposed a new theory in development economics. He
started the paper by introducing the questions to be examined, then gave
a literature review on the history of development economics. After that,
he proposed his own theory of new structural economics and compared it
with the existing literature.


Shanghai Aircraft Customer Service Co.,Ltd.is the customer service
center of COMAC and one of COMAC’s three key centers.It is chiefly
responsible for training customers,aviation materials support,customer
support,flight training,and technical publications.

Policy implications

The policy implication as in fiscal policy, management of public fund,
monetary policy, financial market improvement, foreign direct
investment, international trade and human well beings are discussed with
comparison between the new and old theory.


Modern large passenger aircraft opens the human civilization of flying
and becomes the most efficient means of transportation. As a member in
the big family of world civil aircraft, COMAC will work together with
customers and cooperative partners to deliver safer, cost-effective,
comfortable and environment-friendly civil aircraft, help more people
benefit from the achievements of aviation science and technology, make
human enter a new era with higher safety and lower risk in flight, i.e.
a new era of “harmonious coexistence of men and blue sky”, build a
bridge for human friendship, civilization and progress, and promote
sustainable development of the world.

Comparison with the old structural economics

Instead of promoting systematic, thorough intervention from the
government, the new theory focuses more on the guiding role of the
government. It admits the fundamental significance of market in guiding
the resources but stresses the role of government in providing
underrated information, complementing externalities, encouraging FDI and
improving infrastructure.

  Clearly, technology based on the set of determinants is not likely
to be very relevant to the vastly different economic and socio-cultural
conditions of developing countries. It will hardly get to the needs of
the developing countries, perhaps even serving to slow progress.



The problems of interest are basically how to maximize the economic
growth in developing countries. Specifically, what is the role of
government in the market? How to guide the economy to a more efficient
equilibrium in the process of industrialization and structural
transformation? How to avoid too much distortion resulting from the
government intervention?

  The technological revolutions of the last two decades have placed a
severe burden on the concept of technology transfer. It is quite clear
that the concept has serious limitations; with time, it is not at all
clear that its methods have improved or its result progressed.


  (4) This situation must be replaced by a new process which might be
called “basic knowledge transfer” as part of growth of a forefront
science in the developing countries. This approach contains the
following features:

Large passenger aircraft is the embodiment of the nation’s industrial
and technological standing as well as the comprehensive power, and is
praised as “the flower of modern industry” and “a pearl in modern
manufacturing industry”. In order to realize the century dream of flying
in the sky and the strategy of the nation, COMAC is established,
therefore, COMAC bears the nation’s dream and people’s trust. Summoned
and inspired by the sacred mission of “letting China-made large aircraft
fly in the blue sky”, all COMAC staff merge their life pursuits and
value goals into the unremitting efforts for large passenger aircraft
programs, tackle difficult problems, strive for success, and resolutely
follow the road of civil aircraft development with Chinese
characteristics and embodying technical progress in order to achieve the
success of research, development and commerce of large passenger
aircraft programs, drive economic, science and technology development of
China, and make the aviation industry of China move up to a higher

  • Scientists in the developing countries, in active dialog with
other elements such as government, community and industry, can identify
and prioritize problems and develop a practical situation.

To replace smaller regional aircraft to meet the operating requirements
of China’s western regions to realize direct flights between long
distance destinations and improve service standards;


**Independent Intellectual Property Rights. **In order to meet the
demand of the domestic aviation market, we should comply with the
safety, economy, comfort and environmental regulations of the aviation
authorities and acquice ownership of our independent intellectual
property rights.


***Basic Principles of Developing C919 ***


***Main features of C919 ***

  Text 6

Core Values:Safety first, customer-centric,independent innovation,
and mutually-beneficial cooperation.

  (5) The problem of internal “technology transfer” will require for
each country or region a suitable number of trained scientific
specialists; means for maintaining the competency of these leaders will
need to be developed by each nation or region.

COMAC functions as the main vehicle in implementing large passenger
aircraft programs in China. It is also mandated with the overall
planning of developing trunk liner and regional jet programs and
realizing the industrialization of civil aircraft in China. COMAC is
engaged in the research, manufacture and flight tests of civil aircraft
and related products, as well as marketing, servicing, leasing and
operations of civil aircraft. The company has nine member organizations:
Design, Research and Development Center of COMAC (Shanghai Aircraft
Design & Research Institute), Manufacturing and Final Assembly Center of
COMAC(Shanghai Aircraft Manufacturing Co Ltd.), Customer Service Center
of COMAC (Shanghai Aircraft Customer Service Co., Ltd. ), Beijing
Research Center of COMAC (Beijing Aeronautical Science & Technology
Research Institute), Civil Aircraft Flight Test Center of COMAC,
Capability & Supporting Center of COMAC (Shanghai Aviation Industrial
(Group) Co., Ltd.), News Center of COMAC (Shanghai Commercial Aircraft
Magazine Co., Ltd.), COMAC Sicuan Branch (In Preparation), and COMAC
America Corporation. COMAC has also had its Beijing Office, U. S. Office
and European Office in Beijing, Los Angeles and Paris respectively, and
set up a Financial Service Center in Shanghai. COMAC is a shareholder of
Chengdu Airlines Co., Ltd. and SPDB Financial Leasing Co., Ltd.



  The fundamental flaw is that “technology transfer” is cast in the
die of a colonial process whereby developed countries do things in ways
that they find acceptable for their former colonies, the developing
countries. (3) Whether the development process is carried out by
citizens of the recipient nation or not is irrelevant; the philosophy
upon which” technology transfer” is based, beginning with training and
ending with application, is composed of a set of socio-culturally and
economically determined values within the institutionalized fabric of
science, which select the questions found to be meaningful, dictate the
preferred research plans and evaluate the significance only of the
results obtained.

Objectives: To build the large aircraft program into a symbol for the
reform and opening up policy in the new era and for creating an
innovative nation, and to build COMAC into a world-class aviation
enterprise (“Two Builds”).

  • Given full access to new scientific discovery at the cutting edge
of science, that is, at the region of high intensity transfer from basic
to applied knowledge, the scientists of developing countries can create
their own technology transfer from basic to applied.

Before being a member of COMAC,SADRI had performed research and design
tasks for various civil aircraft prograns ever since its inception in
the 1970s.It independently completed the design of China’s first large
trunk liner program(Y-10),and co-designed with its Shaanxi colleagues an
airtight aircraft(Y-8).It participated in McDonnell Douglas’s super high
bypass technoHlogy development along with other international
cooperative projects.SADRI completed the liaison engineering and
airworthiness tasks for the MD-82/83 aircraft and MD-90 trunk liners.