Underlying the collapse of the decades-old socialist regimes of Eastern Europe is their failure, or more specifically the failure of their technology policies, to provide even the hope of parity with the west. This article examines the evidence and reasons for the failure of East European technology policy as well as the likely impact of a systemic transformation. In so doing its primary focus is the development of information technology (IT) in the former German Democratic Republic (GDR). This case study permits useful generalizations for understanding both the failure of East European technology policy and the implications for technology development and application inherent in the new trends of marketization, integration, demilitarization, and democratization. © 1991.