Prominent theoretical and empirical findings show the channels through which international trade affects a firm’s technology diffusion and adoption: the reverse engineering and learning process of technology embedded in imported machinery and equipment, an increase in variety and quality of intermediate inputs, and an increase competition redirecting a firm’s resources to innovative activities. With the introduction of the internet and other digital-related technologies, international trade has been digitalized and growing at an average nominal rate of 12% per year. Despite the rising digital trade activities, there is no study yet looking into the role of digital trade in technology diffusion and adoption in the literature. For developing countries, finding the role of digital trade in technology diffusion and adoption is crucial to understand the mechanism for them to catch up with richer countries. The study will fill the gap by looking at the role of digital trade in technology diffusion and adoption in three different essays. The first essay will investigate the role of imported digital intermediate inputs in technology diffusion and adoption in the manufacturing sector by taking quantitative evidence from Indonesia. The second essay will examine the impact of digital trade in services on service provider innovation by taking quantitative evidence from Southeast Asia countries. The third essay will provide qualitative evidence from the IT-business process outsourcing sector in the Philippines to investigate how the increase of cross-border digital services supplied by services firms in developing countries affects their technology diffusion and adoption.