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 Session I Technology, Trade and
Growth-lessons of Experiences

• Issues related to technology policies
• Assad Omer, UNCTAD

WTO Seminar on Technology, Trade and Development,
14 February 2001
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Critical determinants of a countrys ability to
compete successfully abilities to create
and to acquire and adapt technologies from both
external and internal sources
1/ The concept
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The challenge

• to establish and maintain effective access to
  this information, and
• to devise mechanisms for diffusing it effectively
  within the economy

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Technology transfer process successful
learning of information by one party from another
party, and effective application of that
information in generating marketable products and
services
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Such transfers are costly and require investment
by both parties in a process with uncertain
outcomes
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Potential opportunities Productive activities
can be segmented and spread around the world in
different locations, more countries could
participate in international production and trade

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But these opportunities are not easily tapped by
all countries Only countries with a broad
range of technological capabilities areable to
host specialized activities in the various
segments of goods and services production
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New approach in policies focus more on
effective collaboration between partners to
attain real technology transfer
2/ Technology policies
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New policies are also aimed at inducing TNCs to
improve the content of their technology transfer
by providing better domestic skills,
capabilities, supplier networks and infrastructure
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The new technology paradigm conceptualizes
innovation and knowledge encompassing not only
product and process technology but also
organizational knowledgeNew skills and
institutional changes are required
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New technologies relative to conventional
technologies low cost-solutions,
andleapfrogging provides high-tech, inexpensive
in the long term, and possible blending
technologies (traditional with new, big with
small and indigenous with foreign).
3/ Leapfrogging and technological learning
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New technologies Hard to learn but high
potential for further innovationTechnological
choice choosing the most appropriate technology
for a particular period in time orchoosing the
most appropriate path for technological
development over time (technological change is
path dependent).
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Countries in higher up the technology ladder,
better positioned to acquire and adapt high-tech.
Countries in lower down the technology ladder,
better to avoid technological fixes and choose
technological solutions with potentially higher
learning spillovers
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Technology acquisition and application to be
accompanied by deliberate policies to stimulate
technological learning and the enlargement of
local absorptive capacities (necessary for moving
up the technology ladder)Technological learning
requires institutional capacity successful cases
of leapfrogging of Brazil and Malaysia in
telecommunication and information technologies
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As an example, the automotive industry in South
Africa from a highly protected, inward-focused
industry, to one with a marked export orientation
competing effectively in global markets
(preliminary findings of a series of
case-studies Brazil, India and South Africa).
4/ Openness of economy and integration into the
world economy
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Integration into global markets facilitated by
Specific industry support programmes.
Institutional support in innovation and
technological development ( essentiel role of the
South African Bureau of Standards for local firms
to meet the high technical standards)
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Close links with foreign firms facilitated
technology and skills transfers, organizational
development, and access to international markets.
Effective linkages between assemblers and
components manufacturers instrumental in
driving technological development and setting
industry standards
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Role of regulatory policies and national
authorities promoting an enabling environment
for innovation and technological diffusion
involving multiple actors ( public institutions,
domestic firms and entrepreneurs, nongovernmental
organizations, multinational companies,
international research consortia and individuals)

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Technological development and upgrading
important factor for the integration and
participation of developing countries in the
international trading system. This can be
facilitated by not only domestic but also
international actions
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Including human resources development,
strengthening of the policy and legal frameworks
and competitive environment, establishment of
science and technology institutes and
infrastructure, business support services and
home country measures encouraging technology
transfer.
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There are also risks access to these critical
technologies may be limited in an overly
protectionist intellectual property environment
that does not properly balance incentive to
innovate against the needs for dissemination of
knowledge.