The rapid economic growth in newly industrializing countries (NICs) ov
er the past decade has been impressive. However, the ability of these
countries to sustain high growth in the future has come under question
repeatedly. A number of measures are used in this paper to assess the
state of technology in the ASEAN and to draw comparisons with a selec
t group of developed countries. Productivity trends in ASEAN and other
countries are examined first due to the intimate relationship between
technology and productivity While popular measures of technological c
apability, such as the number of R&D personnel and expenditures, are u
sed, the focus is on trade in manufactured goods classified by R&D int
ensity. In the case of the ASEAN, the evidence suggests that they are
net importers of technology and have yet to develop strong domestic R&
D capabilities. ASEAN countries have considerable ground to cover befo
re they can rival the technological capabilities of developed countrie
s. Policy prescriptions for enhancing the technological capabilities o
f ASEAN countries are presented at the conclusion. (C) 1998 Elsevier S
cience Ltd. All rights reserved.