9.5.1 Barriers to Technology Transfer between Countries
Developing countries and CEITs suffer from the same factors that inhibit transfer
of environmentally sound technologies as in industrialised countries (see Section
9.4.1), plus a multitude of other problems. The problems also hinder transfer
between countries.
High inflation rates in developing countries/CEITs and lack of sufficient infrastructure
increase the risks for domestic and foreign investors and limit the availability
of capital. Lack of capital may result in the purchasing of used industrial
equipment (Sturm et al., 1997), resulting in higher energy use and/or GHG emissions,
as well as higher production costs. Trade in second- hand industrial equipment
to developing countries and CEITs is quite common in most industrial sectors,
e.g. cement, chemical, pulp & paper and steel industries. National trade
and investment policies may limit the inflow of foreign capital. This might
be a barrier to technology transfer (see also Section 9.3).
Recent liberalisation of investment regimes, in e.g. the mining industry, is
seen as a way to transfer and acquire new technologies and reduce environmental
damage (Warhurst and Bridge, 1997). This also applies to the role of TNCs and
their role in technology transfer (see e.g. Case Study 13,
Chapter 16). The technology cooperation to phase out the
use of PFCs in the manufacture of semiconductors in the Global Semiconductor
Partnership provides an example of cooperation between TNCs as a way to improve
access of knowledge and technologies (Andersen, 1998a) within a more liberalised
market, and a way to avoid command and control regulations.
Information about and assessment of technologies provided by foreign suppliers
is more difficult for local investors in developing economies. Dependence on
foreign suppliers may also induce risks in the case of technological support.
For almost all industries the major suppliers can be found in the industrialised
world, although some developing countries (e.g. China, India) or sectors (e.g.
sugar cane processing) develop and supply indigenous and even advanced technologies
(e.g. Korea) as well. Experience has shown that environmental considerations
should be more carefully integrated into development and corporation policies.
The policies in technology producing countries for transfer of environmentally
sound technologies to developing countries seem to be inadequate (UN, 1998).
In developing countries and CEITs a lack of protection of intellectual property
rights (IPR) may exist, which is seen as a barrier by technology suppliers (UN,
1998; see also section 3.5 on IPR). Also, technology licensing
procedures may be time consuming, leading to high transaction costs. Besides
the problems with technology selection and supply, inadequate environmental
policies, or implementation thereof, in developing countries and CEITs may reduce
the demand for such technologies.
Basically, similar problems affect the international transfer of technology,
but even more severely. This illuminates the need for closer collaboration between
industrialised and developing countries as well as CEITs, especially in the
areas of technological innovation, strengthening of local capacity, and increased
training and information. In the next section we will discuss international
experiences with technology transfer, based on case studies and available literature.
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