State factors such as central leaders and the bureaucracy, and the various mechanisms and processes which bind the industry's grassroots productive enterprises to them, were identified as being the core determining factors in aviation manufacturing during Chapter Four. However, it was shown how reform has altered certain aspects of the state administrative system, which now works somewhat differently in aviation manufacturing from the way it did a decade or so ago. Specifically, the market economy, enterprise reform, decentralization, and greater interaction with the outside world have changed the way state factors themselves function, and how policy is for­ mulated and implemented. Furthermore, these more contemporary factors have proven capable of working to thwart policy, and of giving rise to out­ comes that are unanticipated and somewhat beyond policy makers' control. This chapter seeks to explore if similar trends are at work within air services.