Perhaps the biggest gain came from study of flame propagation in the
combustion chamber (Thermal Enginerring?). Honda did some ground
breaking work in the 1960's for their racing motorcycles.
If you can more fully ignite the gasoline in the chamber, thereby
drawing more energy from the fuel burned, you would need less fuel to
produce the same power.
Remember, the technology in the 260/289 predates color TV. Since then
exotic features like hemispherical heads and 4 valves per cylinder have
become common place. Not to mention, very precise, electronically
controlled ignition and engine management systems.
Interesting reading on the subject is "The Internal-combustion Engine in
Theory and Practice - (volume 2)" By Charles Fayette Taylor
ps
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