Transferring technology

Technology transfer is a (usually complex) process which cannot be adequately described by a simple line. It may be necessary for scientific or technological resources and many elementary technologies to merge before a functional system can be built.

The technological gap between developed and developing countries is wide and for most of them increasing. Technology flows tend to be associated with investment in and expansion of technologically sophisticated industries. A better understanding needs to be achieved of the various channels for transfer of technology, such as foreign direct investment (FDI) and trade. Technology does not automatically flow from developed countries to developing countries. Reducing the technology gap requires efforts on the part of developing countries to acquire and cultivate technology, as well as efforts on the part of developed countries to transfer technology and know-how.

Technology transfer should be understood in a broad sense encompassing technology co-operation with respect to access to and availability of technologies as well as institutional development and capacity building to identify and use appropriate technologies, including indigenous and local technologies. Objectives for technology transfer should be based on the fact that useful technologies exist in the public as well as in the private domain and that an adequate legal and economic framework, including intellectual property regimes, is necessary in order to facilitate technology co-operation and transfer. The need for relevant technology is especially present in developing countries.

There is need for an exchange of best practices and the provision of technical and, where possible, financial assistance to countries seeking to improve their technological capabilities. There is also need for the provision of advisory services to countries, and even firms, to help them articulate needs for specific technology, to acquire it knowledgeably and to use it effectively. Among the obstacles to effective transfer of technology to enterprises located in developing countries are the weak infrastructures, restricted financial resources and limited bargaining capacity of recipient enterprises.

This strategy features in the framework of Agenda 21 as formulated at UNCED (Rio de Janeiro, 1992), now coordinated by the United Nations Commission on Sustainable Development and implemented through national and local authorities.

Agenda 21 recommends that:

(a) mechanisms should be developed for facilitating cooperation in technology and such cooperation promoted as an element of all external assistance and activities related to technical assistance projects in the public or private sector;

(b) governments, at the appropriate level, in cooperation with other governments and with the support of relevant international organizations, should promote focused and concerted efforts for education and training and transfer of techniques and technologies that support the various aspects of the sustainable planning and management process at national, state/provincial and local levels;

(c) governments at the appropriate level, and with the support of the relevant international and regional organizations, should promote the development of indigenous know-how and technology transfer;

(d) the strengthening of research and development support and strengthening of transfer mechanisms.

The importance of transfer of technology to developing countries has been recognized in various forums. In the context of WTO, the TRIPS Agreement states that developed country members should provide incentives to their enterprises and institutions for the purpose of promoting and encouraging technology transfer to the least developed countries in order to enable them to create a sound and viable technological base.

The Keidanren Global Environment Charter (Japan) requires companies to seek appropriate means for the domestic and overseas transfer of their technologies, know-how and expertise for dealing with environmental problems and conserving energy and other resources.