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POLICY IMPLICATIONS OF NEW TRENDS IN TECHNOLOGY TRANSFER John H. Barton

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Presentation on theme: "POLICY IMPLICATIONS OF NEW TRENDS IN TECHNOLOGY TRANSFER John H. Barton"— Presentation transcript:

1 POLICY IMPLICATIONS OF NEW TRENDS IN TECHNOLOGY TRANSFER John H. Barton

2 OVERALL CHANGES Significantly increased technological sophistication in developing world: e.g. Brazil, China, India, Thailand Globalization of world economy –Export orientation rather than import substitution –Off-shoring of R & D New regulatory structure –TRIPS –Privatization and open capital markets

3 DOMINANT METHODS OF TECHNOLOGY TRANSFER Global public sector => developing nation public sector => application (Cf. NIH in US) –Traditional agriculture –Some energy Global private sector => developing nation private (or public/private) sector => application (Cf computers in US) –Transportation –Electronics –Pharmaceuticals

4 TWO ECONOMIC POINTS S & T is not a zero-sum game –My knowledge can contribute to yours –S & T advance becomes an accelerator of the benefits of free trade S & T success often involves subsidies – which are economically legitimate when responding to: –Market failure in appropriability of technology –Steep learning curve even for efficient industry

5 OUTLINE OF ISSUES Education and human resources Public sector technology transfer Private sector technology transfer

6 HUMAN RESOURCES Central to both key mechanisms of technology transfer Developing country status far better than in past Human resource & scientific system highly globalized (conferences, education, scientific community)

7 HUMAN RESOURCES: PROBLEMS Funding of advanced education Failure to link education to private sector Visa restrictions Brain drain

8 HUMAN RESOURCES: RESPONSES Support for education International clinical programs, particularly those providing business experience Visa access

9 PUBLIC TECHNOLOGY Economic support for subsidy –Basic research– risk of capture by scientific community –Some applied research (agriculture, medicine,... ) Developing nation tendency to copy patterns of NIH, NSF etc. Major programs in –Agriculture – successful but underfunded –Medicine – PPPs – success to be seen –Energy -- fall-off in global support

10 PUBLIC TECHNOLOGY: PROBLEMS IP and Bayh-Dole Research tool patents & open-source responses National security restrictions Inadequate funding

11 PUBLIC TECHNOLOGY: RESPONSES Patent law and possible enforced licensing type issues –Agriculture –Research tools Global research inventory – World Bank? Recognition of appropriate role for public sector subsidies Ways to minimize national security limitations Transnational access to research grants

12 PRIVATE TECHNOLOGY Limited private sector investment by developing nation firms Global increase in FDI in technology- based areas Off-shore research by multinationals Significant incentive changes with deregulation

13 PRIVATE TECHNOLOGY: BARRIERS TRIPS + and bilateral arrangements Access to technology licenses Political concerns with reverse engineering Trade and policy barriers to use of subsidies Absence of effective international antitrust law

14 PRIVATE TECHNOLOGY: RESPONSES Standards for trade secrecy (employee obligations, reverse engineering) Ways to discourage overly-strong TRIPS + agreements International antitrust arrangements Trade law arrangements to facilitate appropriate subsidies Special sector arrangements?

15 ISSUES FOR THE WORLD BANK AND DEVELOPMENT COMMUNITIES Education Clinical programs Global research inventory Recognition of role of public sector subsidies in development

16 ISSUES FOR THE GENEVA COMMUNITY WIPO –Patent law issues –Trade secrecy issues WTO –Discourage overly strong TRIPS + –Visa issues –National security limitations –Transnational access to research grants –Trade law arrangements to facilitate subsidies –Possible science/technology access agreement ??? –Patent/antitrust issues –Sector arrangements as in pharmaceuticals

17 MY PRIORITIES FOR THE GENEVA AGENDA Short term –Patent law reform (WIPO) –Mechanisms for dealing with bilaterals (WTO Art XXIV or TPRM or WIPO?) Longer term –Trade-law aspects of technology subsidies (Anti- dumping, countervailing duties) (WTO) –International patent/antitrust (WTO?) –Possible sector arrangement for pharmaceuticals (WHO?)

18 RESEARCH NEEDS: Most relevant to Geneva agenda –Studies of specific industries –Evaluate trade law issues –Evaluate patent/antitrust question Most relevant to a broader development agenda –Studies of specific assistance programs –Evaluation of government interventions to obtain/develop technology –Regulation/deregulation and research incentives

19 THANK YOU!


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