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

THE NEW ECONOMY: THE CHALLANGE The new economy brings opportunities but also challenges to developing countries. Without investment, technology and innovation, they run the risk of becoming increasingly marginalized from global markets.

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.

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

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 activities and initiatives International Technology Centres (ITCs) Investment and Technology Promotion Offices (ITPOs) Africa-Asia Investment and Technology Promotion Centre (AAITPC) Subcontracting and Partnership Exchanges (SPXs) 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); 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

INTERNATIONAL TECHNOLOGY CENTRES (continued) International/National Centres Cooperating with UNIDO 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) National Technology and Innovation Centre in Venezuela Other R&D institutes, technology centres and universities networked with UNIDO International Technology Centres

INTERNATIONAL TECHNOLOGY CENTRES (pipeline projects) UNIDO-Liuyang International Pharmaceutical Industrial Park (LIPIP) China Climate Finance and Technology Facility (establishment of Venture Capital Fund and Technology Transfer Centre to catalyze investment into energy sector to decrease gas emission) Creatsoul Venture Technology Transfer Centre (to develop bankable projects for commercialization of high-tech & reduce risk of investment) UNIDO-Bulgaria Technology Promotion and Innovation Centre (to facilitate the admission to EU) National technology upgrading programmes in specific sectors of industry (4 on-going and 2 pipeline large projects in India) National technology and innovation centres to strengthen mechanisms for technology transfer and commercialization through linking the existing technology base, venture/start up capital and market place (Peru, Venezuela)

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

Technology Transfer & Commercialization (case studies) Case 1. Technology transfer to secure employment. Case 2. Technologies for poor in Africa (South-South). The International Centre for Advancement of Manufacturing Technology (ICAMT, Bangalore, India) started to implement a project aiming at technology upgrading the foundry industry in the Agra City of India. The transfer of new technology (at a cost of US$150,000) and its application at 100 foundries will secure 10,000 working places for local people, thus investing only US$15 to one job and drastically decreasing the pollution of environment. Within the frame of ICAMT project, UNIDO and India have launched a technology transfer and investment promotion project for production of cost-effective building materials for low-cost housing in Africa. These value-added products are manufactured from recycled agro-industrial wastes & local materials resources. The machinery already sold to Africa after the exhibition in Dar-es-Salam (July 2000) has generated employment of 100 skilled, 220 semiskilled & 600 unskilled workers. The project is being converted into a large-scale South-South programme between India, Asian, African, L.A.& Caribbean countries. Case 3. Technologies for the future through partnerships. Case 4. R&D results are brought to market with capital. The International Center of Medicine Biotechnology (ICMB) in Moscow, Russia, in cooperation with the Beijing Free Economic Zone and City Administration, promoted a modern medical diagnostic centre to be established in Beijing and facilitated the signing of the agreement for initial investment of US$20 million. In addition, ICMB is finalizing a US$7,0 million India Russia partnership programme and facilitating the transfer of 4 technologies for new medicines to Venezuela. In 2001, the National Centre for Technology Transfer (NCTT), established by UNIDO in the Republic of Belarus, facilitated the transfer of 14 technologies through creating new enterprises in the Shandong Province of China. At present, more than 100 research projects are being considered by the Chinese side for initial commercialization. In this case, UNIDO has brought a technology transfer cell with research results to the huge marketplace with start up capital.

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 Slovakia 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

Links of International Technology Centers with ITPOs 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

UNIDO Subcontracting & Partnership Exchanges (SPX) Poland Slovakia Czech Rep Turkey Jordan Tunisia Morocco Algeria (2) Russian Federation Cuba Mexico (6) Costa Rica Bolivia (2) Colombia (2) Ecuador Guatemala Paraguay Peru (2) Uruguay Venezuela (2) Brazil (2) Argentina (3) Chile India (7) Saudi Arabia Cote D’Ivoire Madagascar Mauritius

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