The ability of nations to innovate technologically plays an important causal role in both security studies and international political economy. Explanations for national differences in technological capabilities, however, have had little place in international relations theory. This gap is partly the result of assumptions made by scholars that the rate and direction of technological change are determined by a state's domestic institutions and policies. This article will bring together recent findings about the political economy of technological innovation in order to show that much of this conventional wisdom is incorrect. Instead, it will be shown that, due to the distributive nature of technological change, different combinations of domestic tensions and external security concerns motivate elites to pursue or eschew a technologically competitive economy. Institutions are not causal, they are merely instrumental. Recent findings in the economic development literature therefore have important implications for security studies.Why are some countries more technologically innovative than others? This article will combine a review essay with theory development to offer a novel, security-based explanation for national differences in innovation rates. The primary independent variable is the balance of domestic tensions vs. external , and the editors and anonymous reviewers at Security Studies. 113 114 M. Z. Taylor