This report provides a summary of current international experiences with financial incentives for supporting technology development and identifies some important implications for public policy in Thailand. International experiences have demonstrated the broader public good that can be achieved through policies and public interventions that stimulate technology learning environments built around clusters or networks of firms and national support institutions. Financial incentives serve as a mediating influence to enhance the flow of knowledge from firms that are closer to a leading technological edge through to those firms where technological skills are lagging. They are therefore an essential tool available to governments in seeking to increase national technological capabilities and international competitiveness. Although a wide range of incentives for technology development is in place in Thailand the system overall reflects a policy perspective that has not kept pace with the changing demands of global environments. International experiences reflect the need to target incentives where they will have maximum impact. This requires targeting particular types and groups of firms and targeting the specific technology thresholds relevant to their current levels of technology capabilities. It also implies the need for incentive mechanisms that stimulate a demand for technology and skills rather than focusing simply on their supply. The report draws attention to the need to redirect the current system of incentives in Thailand to place greater attention on efforts to enhance basic engineering and design capabilities, building knowledge networks between large and smaller firms and stimulating demand for technology upgrading.