Targeted innovation initiatives are a key element of development strategies for LDCs. Currently, such initiatives are, if existing, rarely aligned with or contribute to industrial promotion, job creation, and further economic development in these countries. This research aims at proposing principles of Science, Technology and Innovation (STI) policy guidelines and strategies to LDCs through the review and diagnosis of their innovation systems in order to help them develop customized STI initiatives. This research would first be implemented in Lao PDR, and then replicated in stages across other priority countries in Southeast and South Asia and beyond. The case study of Lao PDR defines the appropriate framework conditions, provides contextualization of the global and domestic conditions, and diagnoses its entirety. From these, a potential path and tentative programs are prescribed.