Methodological and Technological issues in Technology Transfer

	Other reports in this collection

5.1 Introduction

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.