An increasing volume of theoretical and empirical literature has emphasized the role of technology in shaping international trade patterns. The neotechnology theories of international trade, however, have limitations in explaining the trade patterns of developing countries. This chapter examines issues raised in the literature relating to technology and international trade and the recent attempts to extend the theory to explain the trade behaviour of developing country enterprises. In developing countries, technology purchases from abroad are the source of a considerable part of the technologies employed by large firms. Therefore, the role of technology in the trade performance of developing country enterprises has to be examined with respect to both their own technological activities as well as technological purchases from abroad. The latter could be made on an arm's-length basis or as a part of a package of resources within the firm, i.e. as foreign direct investment (FDI). Finally, the chapter also looks into the role of technology in explaining intra-firm trade that accounts for a large and growing proportion of world trade and its implications for developing countries.