WTO PUBLIC FORUM 2013

WORKING SESSION ON TRADE AND INNOVATION

BRIEF SESSION REVIEW

15:00-17:00, 2 OCTOBER 2013

MAKIESE KINKELA AUGUSTO , COUNSELLOR AT THE

PERMANENT MISSION OF ANGOLA IN GENEVA AND

FOCAL POINT FOR TRIPS WITHIN THE LDC GROUP

PRESENTATION

1. What the private sector can do

2. Ideas on the framework conditions to facilitate the transfer of innovation and technologies and

3. What could be done concretely to encourage it.

IDEAS ON THE FRAMEWORK CONDITIONS TO FACILITATE THE TRANSFER OF INNOVATION AND TECHNOLOGIES

• In February 2003 the WTO TRIPS Council has adopted a Decision on implementation of Article 66.2 of the TRIPS Agreement. This decision invited Developed Members an obligation to submit reports annually on actions taken or planned in relation to their incentives and support for technology transfer to LDCs.

• Since 2008 to now 2012, the annual reports presented by developed country Members reported activities related to a wide range of activities of various sectors and programs link to Official Development Assistance Programmes (ODA), and Bilateral Donor Aid, but not specific related to the LDC under the implementation of 66,2.

• This overview raises once again the divergent interpretations of Article 66.2 requirements in the absence of any common definition of the key terms, including “technology transfer” and the type of “incentives to be provided to institutions and enterprises” resulting in concrete technology transfer to LDCs.

• Indeed, the difficulties in assessing to what extent Article 66.2 obligations have resulted in a greater technology transfer to LDCs remain just as problematic

How define the scope of what constitutes technology transfer?

What are the most appropriate incentives to promote and encourage technology transfer to LDCs?

IDEAS ON THE FRAMEWORK CONDITIONS TO FACILITATE THE TRANSFER OF INNOVATION AND TECHNOLOGIES

• In order to avoid being locked out of this debate and to

achieve concrete progress on the implementation of

Article 66.2, the LDC Group had proposed as a first step

the adoption of a uniform reporting format with new and

detailed information needed to help assess the effects of

the measure in promoting and encouraging technology

transfer to least-developed country Members in order to

enable them to create a sound and viable technological

base.”

IDEAS ON THE FRAMEWORK CONDITIONS TO FACILITATE THE TRANSFER OF INNOVATION AND TECHNOLOGIES

IN THE CONTEXT OF THE DISCUSSION OF ARTICLE 66.2 OF TRIPS

• In the context of the discussion of Article 66.2 of TRIPS Agreement, the LDC Group defined technology transfer on the basis of UNCTAD and Agenda 21 for change definitions which it understood broadly as transfer of:

• Physical capital and goods: including: specialized equipment; goods embodying or incorporating the relevant technology or idea.

• Capital and goods, Skills and Know-How including: Technical and Manual skills training; Scientific and academic training; Knowledge of operating the technology or equipment; Training and technical advice and assistance necessary to assemble, maintain and operate a viable system or technology.

• Information and data: Manuals; Designs; Blueprints; Operating instructions; Scientific and technical Publications and reports.

• Which can have two forms the supply of hardware such plant machinery, and, the supply of software such as research, training and education.

DEFINITION OF TECHNOLOGY TRANSFER

• The key word of the Article 66.2 provisions is “technology

transfer”. But surprisingly, there is no definition in the

context of Article 66.2 of the TRIPS agreement. In addition,

the definition of technology transfer remains controversial

in other multilateral forums where the issue has been

discussed for over fifty years.

• In short, there is no agreed definition among developing

and developed countries on the meaning and scope of

what constitutes technology transfer.

UN DEFINITION OF TECHNOLOGY TRANSFER

includes four key modes of technology transfer:

(i) physical objects or equipment;

(ii) skills and human aspects of technology management and learning;

(iii) designs and blueprints which constitute the document-embodied knowledge on information and technology;

(iv) and production arrangement linkages within which technology is operated

RANGE OF SECTORS OF PARTICULAR INTEREST FOR LDC

The LDC had identified a range of sectors of particular interest to them for technology transfer, as follows:

(i) education systems;

(ii) training (including various scholarships and other educational opportunities in various technical fields);

(ii) health;

(iii) environment;

(iv) climate change;

(v) pharmaceutical sector;

(vi) textiles;

(vii) agriculture.

 

CONCRETE EXAMPLE OF INITIATIVE OF TECHNOLOGY TRANSFER

Example of very good and concrete incentives

and programs for technology transfer to LDCs

CONCRETE EXAMPLE OF INITIATIVE OF TECHNOLOGY TRANSFER

• Rice-based System Research Programme with the

objective to alleviate poverty through enhancement of the

productivity and profitability of rice-based farming systems

more than $A14.8 million is allocated , from Australia,

 

• 'Cotton 4' Project to learning exchange programme aiming at increasing knowledge and skills from West and Central African researchers, agro businessmen and representatives of civil societies in Australian cotton production systems.

 

CONCRETE EXAMPLE OF INITIATIVE OF TECHNOLOGY TRANSFER

Canada Investment Fund for Africa (2005-2013) (CIFA) is a Government of Canada initiative created to provide risk capital for investment in Africa, it is an important component of Canada's contribution to private sector development in Africa, sponsor by Canadian International Development Agency (CIDA)

It is Fund dedicated to making private equity investments in businesses throughout Africa it a Transfer of physical technology encouraged through investment

In addition, public investments in CIFA from Canada and the United Kingdom (UK) have attracted 7 private investors from Canada, the US, UK, Ghana and South Africa. CIFA capital is invested in15 individual companies (four of which are Canadian) in the oil and gas, mining, consumer goods, financial services, agribusiness, manufacturing, and logistics sectors across the African continent

CAN$100million have been allocated for this project

CONCRETE EXAMPLE OF INITIATIVE OF TECHNOLOGY TRANSFER

• Development and Commoditization of Prefabricated Engineered Bamboo Housing in Africa

• This project will endeavour to transfer new bamboo-based prefabricated housing technology from China and India to East Africa, thereby providing affordable, durable, healthy and environmentally friendly houses for the urban poor. The research's overall goal is to test and assess bamboo, as an eco-friendly, low-cost building material to meet urgent housing needs for the poor in Africa.

• CAN$496,300 have been allocated for this project over 2009-2011

CONCRETE EXAMPLE OF INITIATIVE OF TECHNOLOGY TRANSFER

• Skills Training for Youth Employment Programme

Increase vocational training for 1,200 youth with little or no schooling (30% girls) in Haiti, Mali and Benin. Capacity building, coaching, and provision of equipment using a competency-based approach,

On-the-Job Vocational Training Integration into the Labour Market, CAN$3.62 million have been allocated for this project for the period 2010-2015

CONCRETE EXAMPLE OF INITIATIVE OF TECHNOLOGY TRANSFER

• Outgrowing rosa damascena and know‑how transfer in essential oil production

• Support selected Ethiopian producers of essential oils for the distillation of high quality essential oils and the establishment of a small essential oil industry, GIZ – Germany

• Training in organic and biodynamic cultivation of Rosa Damascena (RD) and other herbal plant which includes composting as an effective way to maintain soil fertility The duration of the project is from 2011 until 2013

CONCRETE EXAMPLE OF INITIATIVE OF TECHNOLOGY TRANSFER

• Swedfund

• Provides risk capital, expertise and financial support for investments

in developing countries. Swedfund's co-financing of investments

facilitates transfer of technology by supporting partnerships and

diffusion of knowledge. Companies investing in developing countries,

including LDCs, and their partner companies in the host countries

• a)co-financing investments in the private sector which

• encourage economically, environmentally and socially

• sustainable business in developing countries.

• b) Offer of risk capital in the form of equity and loan

• to strategic partners wishing to establish or expand their

• operations in target regions.

CONCRETE EXAMPLE OF INITIATIVE OF TECHNOLOGY TRANSFER

New Zealand Private Sector Support Facility (PSSF)

supports private sector operators to access specific technical advice to strengthen production or marketing processes. The overall objective is to build the private sector as an engine of economic development through internal and external trade.

Norway Norwegian Agency for Development Cooperation (NORAD)

NORAD facilities for pre-investment support The objective is to encourage firms to invest in developing countries, including least-developed countries. The facilities promote cooperation, including cooperation relating to transfer of technology through different kind of support.

 

CONCRETE EXAMPLE OF INITIATIVE OF TECHNOLOGY TRANSFER

Norwegian Investment Fund for Developing Countries (NORFUND)

The purpose of Norfund is to promote private-sector development in developing countries by providing risk capital and expertise. Norfund invests in the establishment and development of profitable and sustainable enterprises in developing countries focusing on investments in renewable energy, agribusiness, and the financial sector. The aim is to contribute to economic growth and poverty reduction

SECO Start-up Fund

is loan instrument promotes private sector investments projects in countries with economies under development or in transition including LDCs in order to enhance technology transfer to them.

The Fund has supported SME activities in LDCs such as:Burkina Faso-dried fruits (mango processing) Zambia- coffee processing

The administration of the Fund is delegated to FINANCE contact in Zurich

HOW CAN CURRENT IP REGIMES IN LDCS BE IMPROVED TO BOOST LDCS’ CAPACITY TO INNOVATE?

1. Need of new fiscal policies

Importance for developed and emerging countries to develop new policies and tax incentive measures for private sector and businesses to encourage them to invest more in Least Developed Countries such as tax deductions on profits and taxes on value added for the subsidiaries, based or located in these countries.

HOW CAN CURRENT IP REGIMES IN LDCS BE IMPROVED TO BOOST LDCS’ CAPACITY TO INNOVATE?

2 . Recruitment and Training Programs of LDC Nationals and Students

Strengthen of recruitment and training programs of LDC nationals and students living in the diaspora and abroad for medium and long-term period within the subsidiaries or headquarters of these companies in the world to enable them to acquire capacities & technology to help development projects of company in their country of origin.

 

I THANK YOU