This chapter presents an in-depth analysis of long-term technology choice behavior in industrial sectors through the formulation and empirical measurement of the trans-log cost function. It examines the role of government science and technology policies in shaping producers’ technological decisions, thus influencing both tangible and intangible capital investments. The chapter formalizes a cost minimization framework, exploring how firms optimize production costs in response to evolving market conditions and policy interventions. The analysis focuses on the effects of government-driven Research and Development investments, allocation of subsidies, and technological progress on industrial cost structures. By estimating trans-log price functions across multiple sectors, the chapter evaluates the relationship between technological advancements, input prices, and production efficiency. The findings offer insights into the dynamics of long-term industrial growth, demonstrating the critical influence of policy on innovation and market transformation in various industries.