Research in the innovation studies literature suggests that the technological catch-up of latecomer firms across industries is influenced by government policy, sectoral dynamics, and firm-level startegies. A better understanding of these factors can help both governments and firms facilitate technological catch-up. Although Iran’s medical equipment industry has experienced considerable technological progress over the past decade, its catch-up process has not yet been examined systematically. This study develops a framework for technological catch-up among latecomer firms in Iran’s medical equipment industry by using a multiple-case study design and the sectoral innovation system framework. It analyzes government policies at the national and industry levels, the prevailing technological and market regimes in the industry, and firm strategies, including catch-up strategy, technology strategy, and R&D strategy. The findings indicate that the firms studied have aligned their strategies with the prevailing technological and market regimes and have pursued catch-up not through radical innovation, but through incremental innovation in products and production processes, supported by in-house R&D capabilities and by following market leaders’ trajectories. The results further show that technological catch-up in these firms is not solely determined by internal capabilities and strategies; rather, supportive government policies, together with the dominant technological and market regimes, play a significant role in shaping and accelerating this process.