AbstractProblems have been caused in the underdeveloped countries by looking externally for their science and technology policies, and trying to follow industrialized countries. This has led to foreign firms expropriating scarce resources.A better approach is to develop an internally orientated policy, in which local initiatives are encouraged and the resultant growth generates funds to purchase technology — which further promotes the development of local resources. This would discourage imports of ‘inappropriate’ technology, and help the development of ‘appropriate’ technology. Chinese experience is reviewed.