The economic turmoil in Southeast Asia, occurring just before the dawning o
f the new millennium, highlights the lack of sustainability of the developm
ent paths of many countries in this region. While much of the blame can be
laid on the weak financial infrastructure and poor corporate governance, on
e of the root causes for development unsustainability is the lack of compet
itiveness of their economies, in turn resulting from lack of innovative cap
ability based on science and technology. This is required in order for thes
e countries to make economic transitions necessary for advanced developing
economies. The future of these countries is therefore intimately linked wit
h the future of their science and technology. A balanced development is req
uired, with emphasis placed on niche areas where these countries have strat
egic advantages.