Abstract
The foreign technology introduction to Nagasaki Shipyard provided the evidences that the venture business starting as the independent firm was not always given the advantages. Nagasaki Shipyard as the autonomous unit in Mitsubishi could succeed in the foreign technology introduction and put the shipbuilding industry in developing country on track of increasing returns. It was undeniable that the institutional factors contributed to the path acceleration. These factors, especially the internal capital market, the corporate govemance, and the decentralised organisational form (M-form), created the fundamental rules for evolving the business and business unit. This also provided the space and time that enabled the engineers with higher learning to dedicate them to technological development and manufacturing management
