This report reviews Japan's Key Technology Center Program (JKTC) with the objectives of comparing JKTC to U.S. programs, assessing the potential for initiating similar programs in the United States, and identifying opportunities for enhanced collaboration between the United States and Japan. The panel found that differences in U.S. and Japanese economic and technological development policies would prevent a practical implementation of the JKTC model in the United States. However, selected aspects of the JKTC model hold potential for the design of U.S. technology development programs. A notable feature of the JKTC model is the latitude allowed firms in the choice of research trajectories and project management activities once they have received a JKTC award. Another appealing feature of the JKTC program is that all researchers work under one management chain and get paid from the new company. This links the staff members together, making it easier for them to form teams and work together.