Abstract Technical change and economic development are unequivocally related. But it still is a matter of debate how to close this loop and, even more, how to design proper policies to stimulate knowledge accumulation and diffusion. Evolutionarists and institutionalists demonstrate -to paraphrase Richard Nelson- that a network of formal and informal threads, embodied in what is called the National Innovation System, links the transformation of industrial structure, the accumulation of technological capabilities and the evolution of innovation policies (Cimoli and Dosi, 1995). Taking an evolutionary perspective, the focus of this paper is on technology policy in Latin America and the Caribbean. Two main issues are addressed. The first is to identify changes in the industrial structure, institutions and technology policies in the context of open economies. The second is to analyze market and non-market mechanisms, and supply-side and demand-side incentives responsible, for technical change and innovation, in order to identify technology policy opportunities for the region. The paper ends calling for pragmatism and coordination in technology policy. The need to go beyond a linear logic in innovation policy models the importance of recognizing the complex nature of knowledge and the quasi club good character it assumes in open economies and the crucial role of institutional building and restructuring are the three key pillars of this reality tailored model of technology policy. Actually, effectiveness of technology policies largely depends on the co-ordination and the co-evolution of its objectives, strategies and instruments with the transformation of production and organizational structures.""