Abstract: This paper reviews the co-evolution of China's science and technology (S&T) policies and industrial development during the 40 years of reform and opening up. It is pointed out that the appropriate S&T policies of latecomer countries should be contingent upon the specific stage of industrial catching-up. In the early stage of catching-up, the policies should focus on promoting technology transfer and creating learning opportunities for domestic innovators. In the middle stage of catching-up, the focus of S&T policies should gradually shift to promote indigenous innovation of domestic firms, preventing domestic firms from too much reliance on foreign technology. In the late stage of catching-up, the domestic firms at the global innovation frontier face both technological and market uncertainties. Therefore, the focus of S&T policies should further shift to identify technological directions and create market demand.