Finance is a critical aspect of technology transfer. This chapter reviews
various funding sources and financial mechanisms for conducting EST transfers,
and the types of partnerships and stakeholder relationships that can support
technology transfers. The chapter looks at the practical issues involved and
explores a range of mechanisms and approaches. As discussed in Chapter
4, greater emphasis is being placed on more participatory models of technology
transfer and creation of "social infrastructure." This chapter continues
this discussion with a review of different forms of public-private partnerships.
Introduction of a new technology into a country usually requires investment,
as does the diffusion of existing technologies within a country. Technology
adaptation may also require substantial investments in design and/or production.
Financing is also often required (and particularly difficult to obtain) in the
early (developmental) phases of a technology transfer project or business. Without
financing, very little technology investment or transfer takes place. The provision
of financing depends upon those who have financial resources--whether governments
or the private sector--being convinced that projects and the businesses that
run them will justify the financial support or investment. And investment in
ESTs and businesses will depend upon governments and private investors being
convinced that these will justify--by whichever criteria they apply--the expenditure.
This is the financial reality that underpins all technology investment and transfer
processes. However, financing perspectives may differ enormously not only according
to the project, technology and business, but according to the investor. Thus
governments may offer a range of financing possibilities that differ radically
from the private sector--and each contains enormous diversity itself.
Table 5.1 summarises the policy tools available related
to financing and partnerships, and the barriers these are designed to overcome.
The chapter begins by considering the role and scope of participatory techniques
to help promote stakeholder dialogues and partnership. The chapter then considers
the investment decisions made by private firms that bear on climate-change mitigation
and technology transfer for private-sector-driven pathways. Public-sector finance
and investment, which is of key significance for many forms of transfer, is
considered in terms of direct government finance, official development assistance,
and multilateral development bank lending. The section on private-sector finance
and investment, which is becoming increasingly important in both the national
and international diffusion of technology, discusses a broad range of financial
mechanisms and modalities for finance within the private sector. Because the
relationship between the public and private sectors has already changed markedly
in recent years in many countries, public-private partnerships are discussed.
Public-private partnerships can combine the positive attributes of both sectors
and provide increasingly important opportunities to promote technology transfer.
Finally, technology intermediaries are discussed as important mechanisms to
overcome barriers associated with information, management, technology, and financing.
Table 5.1. Policy Tools for Financing and Participation (Source: Mansley et al., 1997a, b) | ||
POLICY TOOL | BARRIERS ADDRESSED | RELEVANCE |
PUBLIC-SECTOR FINANCE AND INVESTMENT (5.2) | ||
|
|
Government-driven and community-driven pathways All sectors All stages |
PRIVATE-SECTOR FINANCE AND INVESTMENT (5.3) | ||
|
|
Private-sector-driven pathways All sectors Agreement and implementation stages |
PRIVATE-FIRM INVESTMENTS (5.4) | ||
|
|
Private-sector-driven pathways Buildings, transport, industry, and energy sectors All stages |
PUBLIC-PRIVATE PARTNERSHIPS (5.5) | ||
|
Barriers are similar to those for public-sector and private-sector financing and investment, plus the following:
|
All pathways All sectors All stages |
TECHNOLOGY INTERMEDIARIES (5.6) | ||
|
|
Private-sector driven pathways Buildings, industry, and energy sectors Primarily assessment and agreement stages |
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