Technology transfer in bilateral program and lessons

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Technology transfer in bilateral program and
lessons learnedThe Case of Korea

• KEMCO, April, 2002
• Seoul, Korea
• Dr. Suk-hoon Woo

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1. Technology transfer or cooperation?

• Technology is a good that can be transferred?
• Globalization makes the technological
  competitiveness as a primary factor in world
  economy system.
• Public funding replaces the direct subsidy of
  each countries national economic policy
• more RD expenditure, but the result of research
  is considered as national strategy factor.

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• Network effect of technology
• A combination of units of technology is one
  system of technology.
• Path dependency of investments already made.
• Choice of one technology is not just a choice of
  one unit, but a choice of future system
• ex) natural gas pipe-line network,
  electrification and grid network

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• Transfer activities are multiple and complex
• Joint research, FDI, joint-venture, consortium
  can be used as a implementation tools of
  technological cooperation.
• Public program for demonstration project can be
  understood as a principal scheme for the
  technology transfer under UNFCCC
• role of government and public sector

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2. Criteria for needs assessment

• Market potential the technology near to
  commercialization (pre-commercialization stage,
  pre-standardization stage)
• Public oriented technology
• Trigger-effect to create a new markets with
  advanced technology
• Technology includes know-how of soft
  technologies like energy management

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3. Selected technologies

• ESCO(Energy Service Company) and energy
  management system
• Methane capture and reuse in waste land-fill site
• Heat recovery, including heat-pump

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4. ESCO Experiences

• Process
• Circulation of proposals for the national
  stake-holders (1999) - phase 1
• Selection of the ESCOs and potential projects
• Hyundai Motor Ulsan Factory was selected for the
  demonstration projects
• Co-auditing Korean ESCO and US partner
• Project identification

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Technology Transfer Scheme
Hyundai Motors site
Energy auditing and ESCO
Sempra
EPS Korea
Provider
Recipient
Technical support
KEMCO
NREL
MOU for TCAPP-Korea
Korea side
US Side
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• Barriers
• Funding who will pay for the initial survey?
• Sempra, EPS Korea, Hyundai Motors, or KEMCO/NREL?
• Technological system the difference of
  regulation of environment related to the painting
  process (ex. Treatment of VOCs)
• ESCO market structure difference of auditing
  tools and system

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• Limited success in Hyundai ESCO projects
• success
• Technology transfer throughout a experience of
  auditing
• Detailed auditing report and project
  identification - heat recovery process in
  painting process
• Failure
• EPS Korea has been bankrupted - external cause
• Difference of funding system for ESCO project
• public funding (Korea) versus private funding
  (US)
• Hedging for the exchange rate

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5. Lessons learned

• Technology transfer must be considered in the
  context of national strategy, including specific
  circumstances and development stages.
• Experience matters technology it-self is a kind
  of evolutionary process, not just a good.
• History matters path dependency, network effect
  must be considered.