Technology is the new "holy grail" of international economic competition. Countries of all economic sizes and political stripe are seeking to obtain, develop and exploit it. The information sector -- computers, semiconductors, telecommunications and software -- is regarded by many analysts as the epitome of new high technology development. The proposition that nations can capture the benefits of high technology that they develop through government resources is much less well-founded in economic theory or data. The evidence suggests that successful countries have exploited the ease with which technology can be acquired on international markets. National policy instruments for high technology development can be grouped into four major categories: domestic policies, trade policies, exchange rate policies and capital market or financial policies. Technological nationalism, while a potent political potion, is economic poison for the world economy. Traditional theories of comparative advantage have been modified to take into account the increasing importance of technology.