Innovation and technology management is an inevitable issue in the high end technological and innovative organizations. Today, most of the innovations are limited with developed countries like USA, Japan and Europe while developing countries are still behind in the field of innovation and management of technology. But it is also becoming a subject for rapid progress and development in developing countries. Innovation and technology environment in developing countries are by nature, problematic, characterized by poor business models, political instability and governance conditions, low education level and lack of world-class research universities, an underdeveloped and mediocre physical infrastructure, and lack of solid technology based on trained human resources. This paper provides a theoretical and conceptual framework analysis for managing innovation and technology in developing countries like India and China. We present the issues and challenges in innovation and technology management and come up with proposed solutions.