gvcs and international technology transfer (itt)

GVCs and International Technology Transfer (ITT)

andreas.maurer@wto.org

Geneva, 28 June 2012Geneva, 28 June 2012

Transfer Channels

• Trade in products (goods and services)

• Foreign Direct Investment (MNEs)

• Trade in knowledge (technology licensing)

• Intra-national and international movement of people

World exports of goods and commercial services, 1980-2011

Sources: UNSD and WTO2009 value

Billi

ons

of U

S$Global supply chains and world trade

Intermediate goods dominate world non-fuelmerchandise exports

Value ($bn)

1990 2010 1990 2010 1990 2010World 572 2242 631 2273 285 1293

Developed economies 517 1532 465 1129 247 689

Developing economies1) 55 710 166 1144 38 603

Share (%)

1990 2010 1990 2010 1990 2010World 100 100 100 100 100 100

Developed economies 90 68 74 50 87 53

Developing economies1) 10 32 26 50 13 47

Capital-intensive goods1) Labour-intensive goods1) High-tech goods1)

Capital-intensive goods2) Labour-intensive goods2) High-tech goods2)

1) For 2010: includes available data for CIS economies.

Source: UN Comtrade and WTO estimates.

Exports of capital-intensive, labour-Intensive and high-tech goods, 1990 and 2010

Share of high complexity

intermediate goods in total

exports/imports of intermediate goods

Source: Trade patterns and global value chains in East Asia, WTO/IDE/Jetro 2011

COSTA RICA: PARTICIPATION IN GVC

Source: Monge-Ariño (2011), ERSD-2011-9

• Attracting FDI • 5 sectors (electronics, medical

devices, automotive, aeronautic/aerospace, film/broadcasting devices

• Some 60 firms accounting for around 40 per cent of CR’s total exports

Marketing

BrandInnovation

Design

R&D

Standardization

InnovationR&D

Design

Added Value

Manufacture

Logistics

Marketing

Brand

Standardization

Production process

LogisticsAssemblyManufacture

Assembly

Customer

services

Customer services

Services Goods Services and services

SmileyFace (Source: Business Week International online extra, May 16, 2005,

Stan Shih on Taiwan and China)Value Added

Exports of R&D services

2010

Extra EU (27): Imports of R&D services from selected partners

Source: Eurostat.

Source: WTO, 2012, 15 Years of the ITA

Receipts of royalties and licence fees

Exports of C&IS and OBS, 2000-2010

• Trade pattern: – Shift to trade in high-tech goods – Complexity of intermediate goods trade up– Import content of exports up

• Innovation– R&D and R&LF

• Movement of people (technical and managerial staff)

…these are all signs for an increase of ITT

RECAP