The relationship between economics and technology, as well as their interaction in production, productivity, project management, and in technology transfer processes are reviewed. Over the last two decades there has been an increasing interest by economists in the technologist's view of technical change and its mechanisms. The author looks at the zone between technology and economics, the technological economics, and discusses the theory of innovation recently sketched out by Nelson and Winter. The relevance to project management and technology transfer of contemporary writing by economists leads to the view that there are welcome signs of a convergence of the conceptual models now emerging and the practical problems of technology management and movement. Economists now seem more willing to come to terms with technology than technologists with economics. The economic significance of the multitudes of technically unglamorous activities in development work is seriously neglected as a result of over-emphasis on the spectacular technological break. If economic elegance were to be admitted to the criteria of success, one might get a significant improvement in the engineering of technological change. 29 references, 4 figure.