Q:

What factors could allow a civilization to develop technologically while remaining limited to a small area and population?

I thought of the question "What would human civilization be like if our population was and always had been only thousands or tens of thousands and limited to a small area?" Then I realized this question had to be asked first.
There are many non-human species on Earth with a small population in a small area. But is it likely or possible that an intelligent species would remain in this state?
Hunter-gatherer societies are usually nomadic. This means they tend to scatter population. For a species to stay put, I guess they need sufficient food supply that even without agriculture, they don't need to move on. (Which raises the question: will this species ever develop agriculture?)
I guess the core of the question is: Is an intelligent species without a drive to increase its population likely or feasible?

A:

I find it hard to imagine a species without a drive to increase population.  However, If you put said species on (say) an island on an ocean planet, they would find very good reasons not to increase their population.  Looking at small south Pacific Island communities, however, I doubt they would reach our level of technology.  After all, the Industrial Revolution was accompanied by a significant increase in population.
Technological development doesn't really happen without cause, so your mini-civ would need a reason to advance. As you have implied that their population isn't really expanding, perhaps their "island" (i.e. habitable area) is becoming smaller?

