Technologies have been the driver of economic and social development worldwide, but not all countries have had the capacity to develop and maintain the technologies they require. Because technology is so important for achieving climate change stabilisation, the need for enhanced capabilities has made technology transfer a priority high on the international development agenda as well as in climate change negotiations.
There are a number of conceptual models that identify the stages involved in technology development and transfer. The Intergovernmental Panel on Climate Change (IPCC) identified the following five main stages:
- Technology assessment,
- Technology agreement,
- Technology implementation,
- Technology evaluation and adjustment, and
- Technology replication.
- A more comprehensive model that reflects endogenous capacities (Davidson 2001) contains the following stages:
- Consideration of national development plans to identify the sustainable development objectives,
- Technology needs assessment based on the sustainable development objectives,
- Technology selection using endogenous capabilities and identification of gaps that
- can be filled with technology imports,
- Merging endogenous capabilities with technology imports to develop technology,
- Operating technology at designed performance,
- Product or equipment modification to suit local conditions, and
- Development of technology that can compete internationally.
- Technology development and technology transfer relate to existing and emerging technologies and include technology diffusion and technology cooperation with regard to equipment, know-how and software as well as their associated management systems.
These transactions may occur through government-government, public-private sector or private-private sector partnerships. Technology transfer is not only about the supply of hardware across national or international frontiers, but also about the complex processes of sharing knowledge and adapting technology to meet local conditions, along with the associated management demands.
The IPCC defines technology transfer as a broad set of processes covering the flows of know-how, experience and equipment for mitigating and adapting to climate change among different stakeholders such as Governments, private sector entities, financial institutions, non-governmental organizations (NGOs) and research/educational institutions.
In the past, technology transfer was generally viewed as the transfer of machinery and equipment from the producer (usually in developed countries) to the user, (in developing countries) through trade, aid and licensing or foreign direct investment (FDI). However, more recently, it has been shown that such transactions involve technology payments and that technology is embedded in social and political institutions that affect technology absorption.
Also, it is now evident that technology can only be absorbed by the recipient country if there is some level of domestic capacity. Thus some countries, especially in Asia and Latin America, have not only absorbed the technology but have created the capacity to operate and modify imported technology efficiently and, in some cases, even innovating and developing new technologies.
Therefore, some developing countries have been able to compete in the marketplace as a result of technology learning and mastery. Nevertheless, many developing countries lack the human and institutional capacities and the necessary infrastructure for the effective transfer and absorption of innovative technologies.
In recent years, major changes have taken place that influence technology development. These include increased knowledge intensity, the emergence of innovation- based competition through market liberalisation, globalisation of trade and growing concern for the environment. Some developing countries have been able to cope with these changes and to become integrated into the global economy because they treated technology transfer as a process of technology learning, domestic capacity building and innovation. However, the majority of developing countries have not been able to achieve technological progress.
All climate change discussions and initiatives have stressed the need for cooperation between developed and developing countries for the promotion of technology transfer. In practise, different stakeholders, whether Governments, multilateral institutions, the private sector or NGOs, have different roles in technology transfer. While Governments generally create the “enabling environment” to promote investments and technology development and transfer, it is generally the other actors that are involved in the actual transfer.
International issues in technology development and technology transfer
Aspects to be addressed for the effective development and transfer of technologies include:
- Human resource development,
- Institutional development,
- Information development,
- Partnership and networking, and
- Collaborative research and development (R&D).
- Human resource and institutional development are the most important activities for Least Developed Countries (LDCs), while partnerships and networking along with collaborative R&D may be more crucial for other developing countries.
Information development is important for all countries, as it is the cornerstone of technology transfer. The developed countries are expected to facilitate and support human resource capacity building in developing countries.
Human resource development
An adequately trained workforce and technical, business and managerial staff are crucial to adapting, operating and managing technology. The experience of some developing countries has shown that adequate domestic capacities for achieving economic success and sustaining export growth can transform lagging economies into modern dynamic economies. Training is a long-term activity and should be closely monitored for effectiveness through sustained efforts by all stakeholders.
Institutional development
Strategies for developing and strengthening institutions for domestic capacity building in technology development include a number of functions, which are further detailed below.
Technology and business assessments are activities that enable the technology recipient to make appropriate decisions on technology selection based on local resources and constraints along with regional and global conditions. These activities require cooperation with business and technology R&D centres and include:
- Technology sourcing and evaluation;
- Technology testing, demonstration and certification;
- Technology forecasting and tracking;
- Managing effective information systems;
- Technology advisory services;
- Support for a reward system including patenting; and
- Business forecasting.
Technology policy research involves conducting cutting-edge research related to environmentally sound technologies, as well as policy research to assist Governments in the formulation of appropriate legislation, which is crucial for technological progress.
This element is important when modeling long-term demands that take into consideration the problems of climate change (Jacobsen). However, given the high rate of migration of scientists, engineers and technologists to developed countries, retention of adequate personnel is a major challenge facing developing countries. Incentive packages and mentorship programmes attractive to young and upcoming researchers can help.
Technology and business incubation centres are facilities that enhance the marketing of technologies. The absence of such centres for technology development and transfer in most developing countries leads to a waste of resources and frustration among stakeholders.
The work of such an institution should consist of demand-driven activities linked to business opportunities and provide clients with such functions as:
- Evaluation of investment risks,
- Linkages to international technology and business centres,
- Linkages to local and external R&D centres,
- Technology demonstration and exposition,
- Technology investment and management advice,
- Technology forecasting needs,
- Technology upgrading, and
- Technical and financial support for near-market technologies.
Technology demonstration centres can overcome the problems, faced by developing countries, especially the LDCs, of demonstrating technology utilization potential and promoting overall technology awareness. Science and technology exhibitions, both stationary and mobile, and school and mass media programmes are necessary if the cultural aspects of technology transfer and development are to be addressed. Developed countries, where most of these demonstration facilities are located, can assist developing countries in this effort.
Information development
The role of information in technology transfer and development is crucial, and therefore capacities are needed to ensure access to the information required for adequate technological capability. There is much information in the public domain that is useful for technology transfer and development.
However, the information needed should go beyond simple inventories of costs and environmental parameters, and should include specific technical data that will facilitate technology selection, development and use. Also, the scarcity of investment information impedes effective involvement of the private sector.
Thus, in addition to adequate numbers of well-trained personnel in recipient countries, capacities are required for:
- Information assessment and screening,
- The development of information brokers to act as intermediaries,
- Maximal use of electronic systems, and
- The development of databases in developing countries with linkages to international databases.
- Technology partnerships and networking
Technology partnerships between firms in developed countries and those in developing countries have been very effective in technology development and transfer and market development, provided they are two-way relationships involving a long-term commitment with the objective of sharing knowledge, enhancing technological capabilities, fostering innovation and strengthening competitiveness.
Interaction and mutual dependency, as well as risk and cost sharing among partners, are important. Networks consist of a group of institutions or associations with the aims of enhancing the capacity to conduct research and improving training and education through interaction.
Partners can therefore form a network to improve access to new ideas, methods, and information sharing and materials exchange. Both technology partnerships and networking require a certain level of technical competence among partners.
There are many such partnerships and networks among corporations in developed countries, while the number involving firms in developing countries is limited but growing. This recent trend, which is common to some developing countries, especially in South and East Asia, show that these partnerships and networks can foster technological upgrading and improvement in product quality.
Similar results have been observed for countries that have received significant Foreign Direct Investment (FDI). The success of these partnerships depends largely on how the local needs and priorities of the developing country are considered.
Moreover, restrictions and conditions imposed by partners in developed countries can affect these partnerships. Though partnerships and networking are no panacea for capacity building, they can have several benefits including:
- Improvement of market access across a large number of industries,
- Contribution to the development of a competitive local industry and local expertise,
- Contribution to the mobilisation of resources and technological expertise to upgrade lagging infrastructure,
- Improvement of access to international markets, and
- Support to firms and R&D institutions for leveraging their activities and attracting new investments.
- Collaborative research and development
Survival in the global economy requires increased knowledge, innovation, management and technological capabilities. In addition, a multi-disciplinary approach is needed to cope with the knowledge-based activities prevailing in international technology transactions.
These advances have made the type of support needed by technological R&D institutions so expensive that very few institutions can afford them. Furthermore, the knowledge needed not only is absent in developing countries but also may require innovative approaches that can only be achieved through systematic, well-planned R&D programmes.
Since R&D activities are now becoming very competitive and expensive in terms of both financial and human resources, collaboration is necessary for coping with this challenge.
Moreover, collaboration between institutions of developing countries and developed countries can be the most effective option in frontier technologies. Such international cooperation provides opportunities for sharing resources and activities, as well as for making optimal use of facilities.
The dynamics of technological change imply that, in order to address climate change strategically, technology programmes should include current technologies and those at the cutting edge.
Developing countries need to increase their capacities to assess, analyse and choose technologies based on their needs and development priorities, and to adapt them to specific local conditions. Some developing countries and countries with economies in transition can use their human and institutional capacities to focus on technology partnerships and networking.
International institutions and bilateral institutions in developed countries should mobilise some of their capacity to address the current environmental and sustainable development concerns of developing countries.
Source:UN Sustainable Development
Joshua Mosshart
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