аЯрЁБс>ўџ CEўџџџBџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџьЅСq Пг"bjbjt+t+ %2AA\vџџџџџџ]D D D D D D D X X X X 8 œ ,X $,R  .2 2 2 2 2 2 ,,,,,,,v-єj/P,D 2 2 2 2 2 ,&D D 2 2 д 0&&&2 jD 2 D 2 ,X X D D D D 2 ,&.&Tњ&рD D ,2 Ш АnєТœРX X œ Šу+*Committee on Trade and Development 32nd Session, 16 February 2001 Seminar on Technology, Trade and Development, 14 February 2001 Report by the Chairman The Committee on Trade and Development Seminar on Trade, Technology and Development, held on 14 February, was opened by the Director-General, Mr Mike Moore. It was addressed by distinguished speakers from the Indian and Zambian delegations in Geneva; from the Brazilian Ministry of Science and Technology; from the National Research Council of Canada; from the Southern Methodist University, Dallas, Texas; and from OECD, UNCTAD, UNIDO, UNEP and the АФУХСљКЯВЪЙйЭјзЪСЯ Secretariat. Although the seminar was, regrettably, sparsely attended, all those who took part recognized the high quality of the interventions during the day and the keen interest of the debate, especially in the afternoon session. This report sets out the main points raised in statements and discussions. It was widely recognised that technology is a key driver in the trade and development process. In the last two decades, the highest growth rates have been recorded in industries, goods and services exhibiting high technology content. The assimilation and absorption of new technologies, especially those intensive in their use of knowledge-based assets, give developing countries the opportunity to catch up with developed country partners, or to "leapfrog" stages of development. But, to some extent mirroring overall patterns in developing countries’ trade, there are great disparities in the degree to which developing countries have been able to benefit from the rapid growth in high technology, high value added sectors. Foreign investment - which includes FDI and other procedures such as joint venture or other "arms-length" arrangements - often plays a critical role in the transfer of technology and can contribute to upgrading domestic technological capabilities. But FDI flows also vary enormously across developing countries and are highly concentrated in a few recipients. While foreign investors often provide a first impetus for technological advancement, foreign investment may not automatically lead to an upgrading of technological capabilities. Spill-over effects may be limited, in part owing to the interest that foreign investors – especially multinational companies – may have in safeguarding their technological assets from potential competitors. Equally, the process of transfer is typically costly, requiring significant investment by both parties in a process with uncertain outcomes. Upgrading domestic technological capabilities therefore requires governments to create a suitable enabling environment by adopting appropriate policies. Key policy choices for a favourable enabling environment include investment in human capital, with training matched to skills requirements; infrastructure development; establishment of research institutions with close linkages to the private sector and to foreign institutions; and other policies to strengthen the development of the private sector, including competition and regulatory policy, and sound financial and macroeconomic management. It is also important that policy-makers adopt a dynamic perspective, recognising that sources of comparative advantage change over time. For example, while a country may initially benefit from low unit labour costs, dangers exist if production is confined to low level assembly activities that offer little scope to move up the technology ladder. This situation, if not recognised, can lead to increased vulnerability as competitors emerge. It also needs to be recognised that in any industry, the minimal threshold capabilities required simply for survival is likely to rise with time. ./. When considering policy responses, a key element to consider is the opportunities and challenges for the development of technological capability presented by the АФУХСљКЯВЪЙйЭјзЪСЯ agreements and the relation of these agreements to policy options open to developing countries. Some speakers noted that, while technology transfer is one of the objectives of the TRIPS Agreement (see Article 7), it is unclear how far this objective has been met. While there is evidence to suggest that foreign direct investment responds positively and significantly to strong Intellectual Property regimes, especially in sectors that are intensive in the use of knowledgebased assets, it was also argued that such response may not necessarily be linked to enhanced transfer of technology. Furthermore, while patent provisions provide channels that can facilitate the transfer of technology, many developing countries had in practice experienced difficulty in making use of these. On subsidies, it was noted that the АФУХСљКЯВЪЙйЭјзЪСЯ Agreement on Subsidies and Countervailing Measures rules out certain aspects of activist industrial policy, based, for example, on selective subsidisation, by making them actionable through countervailing measures. However, serious questions were posed regarding the utility and effectiveness of such policies in any case. Although the Agreement classifies certain types of spending on research and development as non-actionable (see Article 8), some examples were given of instances where developing countries have had practical difficulties in deriving benefits from these provisions. Regarding trade in services, developing countries were encouraged to use the flexibility – to date sparingly used – available to them under the GATS to attach conditions to their market access offers that would facilitate access to technology (see Article XIX.2). Commitments in respect of commercial presence may facilitate access to technology, including in critical infrastructure-related areas such as telecommunications. However, as in goods sectors, access to technology was not necessarily coextensive with transfer of technology. The question of capacity development in Least-Developed Countries was given particular attention, and the point was made that their low participation in the world economy was to some extent a reflection of the technology gap they faced relative to their more developed trading partners. Article 66.2 of the TRIPS agreement, which was legally binding on developed country members, had to date been of uncertain benefit. A possible area of action was the development of a concrete list of incentives capable of overcoming special obstacles for technology transfer for LDCs. In the afternoon, various speakers from donor and international agencies outlined examples of international collaborative arrangements at bilateral and multilateral levels that can facilitate the upgrading of developing country technological capabilities. It was emphasised that it was important to differentiate technical assistance from the transfer of technology. At the same time, such assistance can enhance the possibilities for technology absorption, especially through the creation of local and cross-border networks and partnerships – including public-private partnerships; transfer of best practices; and the development of linkage between research institutions and enterprises. Numerous examples were quoted, and a presentation was given by the National Research Council of Canada drawing on its experience of over 30 years in the field of technology-related assistance. . It was also pointed out that tTechnical assistance can also play an important role in supporting policy formulation with a view to creating an appropriate enabling environment for the enhancement of technological capabilities. The presentations made to the Seminar – most of which were in PowerPoint format - will be placed on the АФУХСљКЯВЪЙйЭјзЪСЯ website and thus made available to all Members and Observers, as well as the wider public. __________ PAGE  PAGE 3 PAGE  n:\dev\seminar on technology\Chsummary n:\dev\seminar on technology Chsummary %'B™  /?AmТ槇 Ё Ђ Ѓ Љ Њ Т У O"Z"\"]"c"d"e"g"h"n"o"p"q"r"v"w"}"~"""Ј"Љ"а"г"ќїќѕьукбШПЖ­Є›’›‰‡€}€}€}€x€}€}€}uuCJ0J6mH0J6 j0J6U5cHdh0›R&gHHh.œR&HHh0›R&HcHdh/›R&gHcHdh.›R&gHHh/›R&HHh.›R&HHh(›R&HHh ›R&HHh'›R&HHh#›R&HHh!›R&H>* 5>*H*5>*.#BC‚™™t њњѓѓѓАmCEЦ€ ›R&џ.CEЦ€ ›R&џ.$ & F & F["\"g"r"г"ўќўљќ5  t № šžІМyr/CEЦ€ ›R&џ.$ & FCEЦ€ ›R&џ.CEЦ€ ›R&џ.ІYаэИq*F & FKEЦ€ ›R&З№F & FKEЦ€ ›R&З№F & FKEЦ€ ›R&З№э,ˆ!O"Z"["Мy631$CEЦ€ ›R&џ.CEЦ€ ›R&џ.CEЦ€ ›R&џ.["\"e"f"g"r"u"v""€""Ј"Љ"а"б"в"г"§єђ§єђ§щх§х§у§§§44„h4&`#$„јџ„55&`#$„ќџ„# 0А‚. 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