Abstract
Technological governance has only been partially successful for technological upgrading in the five ASEAN countries discussed, with the exception of Singapore. This is a reflection of the fact that FDI is poorly integrated in local and national structures which severely limits the spill-over effects. The early successful export-oriented economic development is no longer viable unless policies and institutions undergo major changes. Furthermore, a continued high rate of economic growth in China, making country into the “factory of the world, is also upsetting assumptions and viability of earlier policies for technological upgrading in most ASEAN countries.