Iran is mainly an exporter of medium- technology industrial goods in two groups: lower medium and upper medium. They account for about two thirds of country's whole exports. In the meantime, it is a big importer of industrial goods with upper medium technology which account for about one third of country's whole imports. There are no significant relationships between technology level and tariff rates but there is a direct relationship between tariff rates and import shares in different technology levels. In terms of technology level in southwest Asia, Iran has a moderate export position among 16 countries. But in the export of goods with upper medium technology, its position is by far better than that of goods with different technology levels. Analysis of Iran's comparative advantage in hi-tech products' exports is among the main topics in analyzing its foreign trade. Iran lacks comparative advantage in hi-tech exports. Since it appears that Iran can achieve the comparative advantage in export of upper medium hi- tech products within a long-run plan of about ten years, it is recommended that Iranian government starts to invest in such products. More importantly, preparing the grounds for further participation of private sector and absorbing foreign investment is necessary.