Third of a three-volume edited collection of key papers from the field of AI and design, aimed at providing a state-of-the-art description of the field, and focusing on how ideas and methods from artificial intelligence can help engineers in the design of physical artifacts and processes. The volumes survey a wide variety of applications in the areas of civil, chemical, electrical, computer, VLSI, and mechanical engineering, and are intended for those working in these fields and for AI researchers interested in AI applications to engineering design.;Volume III covers knowledge acquisition: techniques for acquiring knowledge to extend or improve a knowledge-based system; commercial applications: building a knowledge-based system, including commercially available tools that may serve as modules within a larger knowledge-based system; integrated environments: integrating design with the larger engineering process of which it is a part, including a part for manufacturability; and the state of the field: a report on a workshop in which the leaders in the field discussed the current state of artificial intelligence and design.