The Report defines the term "technology transfer" as a broad set of processes covering the flows of know-how, experience and equipment for mitigating and adapting to climate change amongst different stakeholders such as governments, private sector entities, financial institutions, NGOs and research/education institutions. Therefore, the treatment of technology transfer in this Report is much broader than that in the UNFCCC or of any particular Article of that Convention. The broad and inclusive term "transfer" encompasses diffusion of technologies and technology co-operation across and within countries. It covers technology transfer processes between developed countries, developing countries and countries with economies in transition, amongst developed countries, amongst developing countries and amongst countries with economies in transition. It comprises the process of learning to understand, utilise and replicate the technology, including the capacity to choose and adapt to local conditions and integrate it with indigenous technologies.

The Report generally makes a distinction between developed and developing countries. Although economies in transition are included as developed countries in the UNFCCC they may have characteristics in common with both developed and developing countries.

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