SciDev.Net

This study uses empirical data to analyse the extent to which technological spillovers occur as a result of foreign direct investment (FDI) in Argentina. It discusses why FDI is often assumed to be fundamental to human capital formation and technological development in developing countries.

The authors argue that FDI may not be the most effective instrument to foster technological development. They observe that FDI spillovers are not extensive and that they depend on multinational corporations' assets and investment decisions as well as domestic firms' absorptive capacity, as indicated by their investment in training and equipment.

One of the study's key conclusions is that only those firms that have invested heavily in improving their absorptive capacity will receive positive spillovers from FDI.

The authors suggest that governments must make broader efforts to promote local firms and science and technology organisations, and improve the links between these.

This study examines the role of science, technology and knowledge in development programmes.

Based on qualitative data collected from 14 donor agencies around the word, the author presents a summary of donors' science and technology activities and their supporting mechanisms associated with knowledge for development, including research support, capacity building and technology transfer.

This report discusses whether the TRIPS-Plus rules on pharmaceutical patents are likely to benefit the Thai pharmaceutical industry. It focuses on the expected impact on pharmaceutical product prices, research and development efforts and technology transfer including foreign direct investment.

The author argues that Thailand has limited technological capacity and that a stringent intellectual property rights regime such as the TRIPS-Plus will only protect research results developed elsewhere. In the Thai pharmaceutical industry, it will damage domestic research and development and limit the acquisition of foreign technologies.

The report includes recommendations for developing countries wishing to strengthen their current patent protection and improve their positions in bilateral and multilateral trade negotiations.

This report brings together articles on the globalisation of research and development (R&D) and its implications for developing countries.

Among the key issues examined are:

• the development potential of R&D funded by foreign direct investment (FDI);
• the impact of R&D-based FDI on technology transfer;
• the types of R&D that are beneficial to development; and
• policy interventions that can influence R&D-based FDI in developing countries.

The report reviews the growing number of multinational corporations' R&D activities in select developing countries and their driving forces. It discusses the importance of national policies in acquiring and originating countries as well as international ones.

The report is presented in four parts. The first discusses R&D's globalisation. The second introduces case studies from developing and transition countries. The third presents policy issues. And the last part is a collection of opinion articles.

A key conclusion of this report is that policy interventions can be fundamental to fostering and attracting R&D-based FDI to developing countries.

This World Investment Report examines the latest trends in foreign direct investment (FDI) and looks at how research and development (R&D) has become an international activity thanks to multinational corporations.

The report indicates that FDI flows grew in 2004, driven mainly by FDI to developing countries. It says that multinational companies' R&D in developing countries has become more complex, often going beyond local market adaptation to include activities that target global markets.

The report emphasises that countries receiving inflows of FDI must have coherent policies to promote beneficial R&D interactions between multinational corporations and domestic organisations.

This World Investment Report describes global trends in foreign direct investment (FDI), showing that the growth seen worldwide is largely due to cross-border mergers and acquisitions.

The report highlights the rise of FDI from developing and transition countries, examining the drivers and determinants of this phenomenon, the impact on originating and acquiring countries, and policy implications.

It argues that this rise is largely driven by multinational corporations from these countries that are becoming major players in the world economy.

This report by UNCTAD analyses three case studies of 'best practices' in the acquisition of foreign technologies and the development of technological capabilities in developing countries. Through these three cases: pharmaceuticals in India, automobiles in South Africa and aircrafts in Brazil, the report provides evidence of developing countries which were able to develop new industrial sectors and successfully compete in the international markets.

The report concludes that government policy and market discipline played a mutually supportive role in both the development of the industries and the technological capabilities of enterprises. It also stresses that although no easily transferable blueprints for country policy or strategy could be derived from these successful experiences, the three cases provide guidelines on the types of measures and policy instruments that might assist developing countries in making their industries competitive in the world market.

This report focuses on technology cooperation for the transfer of technologies to developing countries as seen by ten member companies of the WBCSD. The report analyses ten case studies and different sectors are covered, including aluminium refining in Brazil; cola bottling in South Africa; manufacturing ready-mix cement in India and providing electricity to poor neighbourhoods in Morocco.

The report makes it clear that technology transfer is unlikely to be effective unless there is constant and clear communication between companies that are transferring technology and acquiring country governments. It also argues that acquiring countries must have a core of skilled, trained people and that acquiring countries' governments and international development aid could be used to build these skills and create favourable conditions for foreign direct investment.

This report published by UNCTAD examines the impact of foreign direct investment (FDI) on several aspects of economic development, including technological development. Chapter six, particularly, focuses on the relationship between foreign direct investment and the building up of technological capabilities in host countries.

Referring to the impact of FDI in enhancing the technological capabilities of host developing countries, the report concludes that FDI is not a cure-all for technological development. The potential benefits of FDI for technological development are considerable, but the realisation of these benefits depends greatly on existing local capabilities and technological learning. This demands a strong role for government policy in attracting quality FDI, upgrading local capabilities to optimise the transfer of transnational corporations' technologies and the ability to foster its dissemination.

International technology transfer to developing countries is increasingly driven by special provisions in international agreements. For instance, provisions on technology transfer form an important part in several multilateral environmental agreements. Article 4.5 of the United Nations Framework Convention on Climate Change (UNFCCC) asserts that developed countries "shall take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention."

This special report, which was commissioned by the scientific advisory body attached to the UNFCCC addresses different policy and financial instruments to support the transfers of technologies to developing countries, and to some extent build capacities in those countries to absorb these technologies. It also provides case studies from a range of different sectors, including, among others: buildings, energy and transport.

This report provides an overview of developed countries' initiatives and incentives provided to industry to facilitate technology transfers to developing countries. The report presents the findings of a survey of 41 agencies and programmes in 23 developed countries that offer home-country measures that directly or indirectly facilitate technology transfer. These measures include financing support, training, matching services, partnerships, alliances and support for equipment purchase or licensing.

The report concludes that, altogether, the existing home-country programmes are fragmented, insufficient and narrow in coverage. The report provides a number of recommendations to further home-measures efforts, such as the provision of assistance to developing countries to improve technical standards and certification systems, mobilisation of 'business angels', involvement of developing country firms in complex projects and technical assistance to small businesses, especially in least developed countries.

This report prepared for UNIDO summarises current discussions about the processes of technology transfer and their impact on technological capabilities in developing countries. The paper outlines the process of developing capability based on technology transfer in East Asian countries, identifies the problems that have limited technology transfer and technological learning in other 'latecomer' industrialising countries, and outlines the possible role of UNIDO and other international organisations in addressing these problems.

The report concludes by suggesting a framework for action for UNIDO in supporting technology transfer and technological capability building in developing countries. According to the author, these initiatives should both support the process of technology transfer and technological capability development at the national level and develop international policy initiatives to deal with trade and environment issues that have adverse effects on technology transfer in developing countries.

"Fatal imbalance" is the product of MSF’s 'Drugs for Neglected Diseases' Working Group — a collaboration between scientists, health professionals, drug development experts, international organisations and non-governmental organisations.

It concludes that virtually no new drugs are being developed for diseases that predominantly affect the poor, such as sleeping sickness, Chagas disease and leishmaniasis. For example, of the 1393 new drugs approved between 1975 and 1999, just 13 (one per cent) were for tropical diseases.

The report explains that responsibility for correcting the 'fatal imbalance' lies with governments, who must become directly and proactively involved in searching for solutions at a global level. The report also recommends that capacity building and technology transfer projects to increase research and development expertise in developing countries be actively pursued.