This paper summarizes the findings of a review, conducted under the auspices of the Geomechanics Program of the National Science Foundation, comparing research and development in excavation technology in Japan, the U.S. and Europe, focusing on Japan and the U.S. The report examines the current status of tunnelling and the construction industries and reviews recent underground technology developments in Japan and Europe. Findings of the review are that R&D funding level, distribution and nature of R&D expendirues, and procurement practices are of paramount importance with regard to the ability of the U.S. to compete with European and Japanese technology. The report concludes with an appendix summarizing the results of a questionnaire survey sent to excavation technology experts in Japan, Europe and the U.S.