UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Web site: http://www.unido.org

TECHNOLOGICAL ADVANCES AND INNOVATIONS TO ENHANCE PRODUCTIVITY PROGRAMME ON TECHNOLOGICAL ADVANCES AND INNOVATIONS TO ENHANCE PRODUCTIVITY OF INDUSTRY

Role and Impact of Technology: Increasing Globalization Worldwide economic growth offers many new opportunities for selling products and services in countries previously inaccessible because of geography. To compete effectively in foreign markets, local manufacturing is important and will increase the potential markets for local industry. Technological innovation will provide many new market opportunities. Success in capturing new, emerging markets will depend on the industry’s ability to compete in different environments.

Role and Impact of Technology: Sustainability It is technological development that meets the economic and environmental needs of the present while enhancing the ability of future generations to meet their own needs. As world population increases, the industry can serve more customers with higher quality, higher performing products and services, while demonstrating responsible reponsible stewardship of our planet. The nation should be properly positioned to bring into reality the technology vision of an industry – one that protects environmental quality, improves economic well-being, and promotes a higher quality of life. The industry now has the opportunity to accelerate its development of advanced manufacturing technologies and innovations that use materials and energy more efficiently. Environmental technologies make sustainable development possible by reducing risk, enhancing cost effectiveness, improving process efficiency, and creating products and processes that are envoronmentally beneficial or benign.

Role and Impact of Technology: Financial Performance The industry now has the opportunity to devise strategies to achieve targeted short-term returns while at the same time attracting the capital needed for investment in longer term projects and facilities. Strategically driven investment in R&D and new technologies will continue to drive the industry toward unprecedented levels of of productivity and return on capital. R&D, new technologies and innovations are the greatest drivers of productivity increases. Investment in advanced manufacturing technologies, logistics and management of the supply chain, information technology, and new engineering technologies are vital for achieving the country’s goal of leading the manufacturing sector in profitability.

Role and Impact of Technology: Customer Expectations To meet expanding customer expectations, the industry needs to apply innovative technology throughout all phases of R&D, production and distribution. Improvements in logistics and supply chain management will enable manufacturers to deliver products to customers more efficiently and at lower cost. New operations and manufacturing technologies will ensure highest product quality and more sophisticated information systems will link companies to their customers. New engineering technologies will provide products that add value for customers and, in turn, for their customers. Technological advances will reduce product development response times and help industry meet customers’ rising expectations.

Role and Impact of Technology: Changing Work Force Requirements Because of all the forces creating change in industry, particularly having to do with the nature of the manufacturing process and facilities, more highly skilled workers will be required for tomorrow’s work force. The influx of computers and automation will make plans easier to run but will require a more technically advanced understanding of the process. The increasing complexity of technology and the rapid pace of technological change places increasing demands on employees across the work force, from the scientist at the laboratory bench to the operator on the plant floor. The hallmark of the future work force will be flexibility, not an assault on jobs. Continuing worker training will be an ongoing part of every employee’s career. This dynamic has implications for educational curricula and programmes of the future.

Geography of Technological Innovation and Achievement Leaders Potential leaders Dynamic adopters Marginalized Data not available Technological achievement index Technological innovation score Hubs 16 (maximum) 4 (minimum)

THE TECHNOLOGY DIVIDE: OUTLOOK A small number of industrialized countries provide practically all the world’s technology innovation. Some developing countries are able to adopt these technologies in production and consumption. The remaining part is technologically disconnected, neither innovating nor adopting foreign technologies.

The New Global Setting Increased financial, trade, investment and technology flows Rapid and accelerating technological progress, including ICTs, biotechnology, new materials, electronics, robotics New managerial and organizational systems New international rules and regulations: trade, quality, environment, intellectual property rights

Barriers to Technology Transfer Lack of access to information on new technologies and innovations. Inadequate institutional infrastructure, management and marketing human skills. Organizational rigidities within the firms themselves. Limited access to finances. Regulatory constraints. Inefficient R&D institutes and disconnection from needs of industry. Inadequate human resources and mechanisms for their upgrading. Lack of resources, knowledge and capabilities within policy institutions. Low efficacy of government support schemes. 1. Industrial Governance -Industrial Policy Formulation & Implementation -Statistics and Information Networks 2.Investment and Technology Promotion -FDI, Technology & Know How Transfer to Developing Countries -Networking 3.Quality and Productivity -Metrology, Standardization Certification and Accreditation -Continuous Improvement & Quality Management 4.Business Development -SMEs Policy Framework -Women Entrepreneurs: Policy -Entrepreneurship Development

UNIDO Response Objective: To assist the countries in strengthening their capabilities in transfer, absorbing and mastering technology: At policy level, technology foresight permits to define strategic development directions, guide innovation policy and set up supporting infrastructure. At institutional level, strengthening National Innovation Systems, technology and innovation centres, high-tech parks, etc. and networking them with UNIDO International Technology Centres, bringing a culture of innovation to business, strengthening R&D institutions to become ‘demand driven’ and respond effectively to industry needs. At enterprise level, efforts are focused on building capacities in transfer and commercialization of technology and sustainable mechanism to manage technological change. 1. Industrial Governance -Industrial Policy Formulation & Implementation -Statistics and Information Networks 2.Investment and Technology Promotion -FDI, Technology & Know How Transfer to Developing Countries -Networking 3.Quality and Productivity -Metrology, Standardization Certification and Accreditation -Continuous Improvement & Quality Management 4.Business Development -SMEs Policy Framework -Women Entrepreneurs: Policy -Entrepreneurship Development

UNIDO Approach Application of modern Information and Communications Technologies (ICT) for improving access to international knowledge, education, training and networking to meet the basic requirements for industrial capability building. Establishment of International Technology Centres as a unique tool to promote international collaboration, diffuse technological knowledge and innovations and expand UNIDO capacity in technology transfer. Promotion of environmentally sound technology (EST) to reduce the unfavourable environmental effects of industry. Strong links to financial sources. Integration of technology transfer process with other dimensions of the business development, trade liberalization and protection of environment to enhance the contribution to competitiveness and performance of a firm. Assistance through the whole cycle of technology transfer. 1. Industrial Governance -Industrial Policy Formulation & Implementation -Statistics and Information Networks 2.Investment and Technology Promotion -FDI, Technology & Know How Transfer to Developing Countries -Networking 3.Quality and Productivity -Metrology, Standardization Certification and Accreditation -Continuous Improvement & Quality Management 4.Business Development -SMEs Policy Framework -Women Entrepreneurs: Policy -Entrepreneurship Development

Strengthening National Innovation System     Process Level Needs Services Programmes   Technology Diffusion Government Policies Strategies Action-plans Advisory Awareness building TF TRM Needs Assess. Institutions Capacity Networking Sustainability Capacity building Tech. Promotion Links to market ITCs TPs Needs Assess. Technology Transfer Enterprises Knowledge Know-how Management Partnership (ITPOs) Capacity building TM BAs Needs Assess.    

IT Networking - IT TECHNOLOGY PROMOTION PROGRAMME Networking - IT Government Policy Technology Foresight and Monitoring IT Networking - IT Networking - IT Technology Acquisition and Transfer Technology Management and Innovation Networking - IT Institutional Framework Enterprises Competitiveness

UNIDO Service Modules 1. Industrial Governance and Statistics 2. Investment and Technology Promotion 3. Quality and Productivity 4. Small Business Development 5. Agro-Industries 6. Industrial Energy and Kyoto Protocol 7. Environmental Management 8. Montreal Protocol 1. Industrial Governance -Industrial Policy Formulation & Implementation -Statistics and Information Networks 2.Investment and Technology Promotion -FDI, Technology & Know How Transfer to Developing Countries -Networking 3.Quality and Productivity -Metrology, Standardization Certification and Accreditation -Continuous Improvement & Quality Management 4.Business Development -SMEs Policy Framework -Women Entrepreneurs: Policy -Entrepreneurship Development

UNIDO Contribution At the aggregate level of technical cooperation projects (2001): 39 % was dedicated to international protocols, agreements and conventions; 20 % - to investment related technology promotion; 19 % - to environmentally sustainable industrial strategies and technologies, including quality, standardization and metrology; 10 % - to institutional capacity building, including networked industrial statistics and information; 10 % - to agro-industry; 2 % - to industrial policy advice. 1. Industrial Governance -Industrial Policy Formulation & Implementation -Statistics and Information Networks 2.Investment and Technology Promotion -FDI, Technology & Know How Transfer to Developing Countries -Networking 3.Quality and Productivity -Metrology, Standardization Certification and Accreditation -Continuous Improvement & Quality Management 4.Business Development -SMEs Policy Framework -Women Entrepreneurs: Policy -Entrepreneurship Development

TECHNOLOGY AND INVESTMENT PROMOTION Objective To help developing countries and economies in transition bridge the technology divide and the investment gap by strengthening their capacities for transfer and acquisition of new technologies, assisting them in technology needs assessment, attracting investment for industrial projects, as well as by establishing sustainable mechanism for technology diffusion and promotion of business alliances

UNIDO: Principal technology transfer and investment promotion mechanisms International Technology Centres (ITCs) Investment and Technology Promotion Offices (ITPOs) Africa-Asia Investment and Technology Promotion Centre (AAITPC) Subcontracting and Partnership Exchanges (SPXs) National Technology and Innovation Centres National Cleaner Production Centres (NCPCs) UNIDO Exchange Technology Foresight Continuous Improvement and Quality Management SME Clusters and Networks Programme Training, tools and methodologies

Technology Foresight Initiative New Initiatives Technology Foresight Initiative It aims of providing suitable methodologies to promote sustainable and innovative development, fostering economic, environmental and social benefits at national and regional levels. The result will be the capability enabling to use technology foresight as a practical tool in designing policies and strategies that exploit emerging and critical technologies for the benefit of countries.

New Initiatives "Technology Transfer: Needs Assessment - Promoting Action" Objective: To enable the countries to audit their current technological capabilities and identify strengths and weaknesses at national, sectoral and enterprise levels. This tool is designed to: Map out the overall capability level. Profile the capabilities of a country showing strengths and weaknesses. Assess the effectiveness of current mechanisms for technology acquisition. Provide valuable information to help select technology priorities within a coherent strategy for technology upgrading and acquisition.

New Initiatives Trade Facilitation Initiative Objective: To build and develop the capacity of industries in developing countries and economies in transition to facilitate access to the international markets of their products. Assistance in mobilizing the scientific and technical skills and capacity to meet the international standards in quality, productivity, health, safety and environmental requirements.

New Initiatives Environment Related Initiatives Objective: To support the efforts of the developing countries and economies in transition in efficient use of energy and water resources and management of environmental problems. Capacity building to meet the requirements of the Climate Change Convention and Kyoto Protocol regime. Promotion of technology, investment and trade under Clean Development Mechanism (CDM)

Emerging Role of Technology Centres Emerging Business Environment Technology Technology divide Rapid advancement Shortened lifecycle Market Globalization New economy Competition Customer demand Environment & Quality Enhanced requirements & int. standards conformity Emerging Technology Strategy TC present & future: To bridge technological divide through: Monitoring technological trends to support Foresight activities. Focus on areas with transsectoral & wide-economy impact. Identification of needs, sourcing & acquisition of technology. Capacity-building for transfer, application, diffusion, of technological innovation & management of technol. change. Linking demand driven projects to industrial investments. Networking

INTERNATIONAL TECHNOLOGY CENTRES Main Features: mostly operate in the field of new technologies with cross-sectoral and high environmental and social impact – IT, biotechnology (incl. biomedicine), new materials, processing technologies; monitor technological trends (foresight, roadmapping); bring the innovation results and the innovation culture to the business environment linking technology with capital, industry and market place; facilitate transfer and absorption of technology to developing countries (North-South and South-South); provide training and support to SMEs in technology transfer, commercialization, absorption and diffusion, as well as in managing technological change on sustainable basis; network with R&D institutes, universities, professional and industrial associations, government institutions, etc.

INTERNATIONAL TECHNOLOGY CENTRES (ongoing projects) International Centre for Science and High Technology (ICS, Trieste, Italy) International Centre for Advancement of Manufacturing Technology (ICAMT, Bangalore, India) International Centre for Small Hydro Power (ICSHP, Huanzhou, China) International Centre for Application of Solar Energy (CASE, Perth, Western Australia) International Materials Assessment and Application Centre (IMAAC, Rio de Janeiro, Brazil) International Centre of Medicine Biotechnology (ICMB, Moscow, Russia) International Centre for Materials Evaluation Technology (ICMET, Taejon, Republic of Korea) UNIDO-Shanghai International IT Technology Promotion Centre (Shanghai, China) UNIDO-Shenzhen Environment Technology Promotion Centre (Shenzhen, China) International Centre for Materials Technology Promotion (ICM, Beijing, China) – the project started in June 2002 Russia-Brazil Centre for Technological Cooperation

INTERNATIONAL TECHNOLOGY CENTRES (continued) International/National Technology Centres Cooperating with UNIDO International Centre for Genetic Engineering and Biotechnology (ICGEB, Trieste, Italy and New Delhi, India) International Centre for Scientific and Technical Information (ICSTI, Moscow, Russia, 18 member countries) International Technology Centre (InterTec), Vienna, Austria (around 1.000 technologies from Russia) National Technology Transfer Centre (Minsk, Belarus) Technology Transfer Centre (Kiev, Ukraine) Other R&D institutes, technology centres and universities networked with UNIDO International Technology Centres

National Technology Centre (model) Think Tank Beneficiaries NTC Products Technology Foresight Government Awareness on Trends Publications Tools Industry Advisory Committee R&D Institutes Universities Acad.of Sciences Consulting comp. Funding Agencies Technology Services EGM Acquisition Workshops Transfer Assessment R & D Marketing Sourcing Awareness Monitoring

TECHNOLOGY RELATED TOOLS AND METHODOLOGIES Technology Needs Assessment Manual and reporting software system UNIDO Manual on Technology Transfer Negotiation and Training Kit Training Package on Technology Management Guidelines on Business Alliances Guide on Joint Ventures UNIDO BOT Guidelines UNIDO’s Subcontracting System

INVESTMENT AND TECHNOLOGY PROMOTION OFFICES’ NETWORK Investment and Technology Promotion Offices (ITPO) Bahrain Italy (Bologna and Milan) Belgium (Walloon region) Brazil (Pernambuco) China France Greece Japan Poland Republic of Korea Russian Federation Investment Promotion Units (IPU) Egypt Jordan Uganda Tunisia Morocco Investment and technology promotion focal office in the UK - North-West Development Agency (NWDA) and NIMTECH

INVESTMENT AND TECHNOLOGY PROMOTION OFFICES (ITPO) Services Information fast lane Partnership promotion Investment/technology promotion delegate programme Business negotiations

DIFFERENCES AND COMPLEMENTARITIES INVESTMENT AND TECHNOLOGY PROMOTION: DIFFERENCES AND COMPLEMENTARITIES Investors Government Agencies Investment Funds Financial Institutions Industrial Associations Venture Capital R&D Institutes Universities Technology Management Innovation Competitive Production Sustainable Growth ITPOs Technology Centres IPAs Investment Technology

Interlinks Between Technology, Investment and Trade in the Production System Technology upgrading, transfer & acquisition. Value- Added Competitive Products Investment, technology transfer Technology assessment. Business partnership & strategy. Manufacturing Promotion Business Development Technology monitoring, sourcing & brokering. Market & partnership development. Investment Technology Industrial R&D Awareness & technology trends. Investment trends Marketing, R&D & Business Strategy ITCs ITPOs Government Policy, Strategy 4

Investment and Technology Promotion Network: (Locations) ITCs ITPOs

THANK YOU

For more information about technology centres, please contact: Vladimir Kozharnovich Programme Manager Industrial Promotion and Technology Branch Programme Development and Technical Cooperation Division UNIDO, P. O. Box 300 A-1400 Vienna, AUSTRIA Phone: (+43-1) 26026-3720/3702 Fax: (+43-1) 26026-6870 E-mail: V.Kozharnovich@unido.org Web-site: http://www.unido.org 62