Technology plays a significant role in regional development, particularly in the manufacturing sector. Technical progress, achieved through incremental change, problem solving and collaboration, enables manufacturers to achieve the economies of scale they need to become competitive in both domestic and international markets. Their growth allows them to hive off specialised divisions, leading to the formation of new regional enterprises which tend to select locations close to their 'parent' firms. This contributes to the development of clusters of linked industries, a process that stimulates regional development. Using cumulative causation as the theoretical base, this paper describes the findings of research undertaken in the Riverina Region of New South Wales to show how technology influences regional development through the above processes.