Innovation and Technology Collaboration in the Global South

Innovation, Technology
and South-South Collaboration
TECHNOLOGY
AND INNOVATION
REPORT 2012
U N I T E D N A T I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T
EMBARGO
The contents of this Report must not be
quoted or summarized in the print,
broadcast or electronic media before
31 October 2012, 17:00 hours GMT

Innovation, Technology
and South-South Collaboration
TECHNOLOGY
AND INNOVATION
REPORT 2012
New York and Geneva, 2012
U N I T E D N A T I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T

ii TECHNOLOGY AND INNOVATION REPORT 2012
NOTE
The terms country/economy as used in this Report also refer, as appropriate, to territories or areas; the designations
employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of
the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authori-
ties, or concerning the delimitation of its frontiers or boundaries. In addition, the designations of country groups are
intended solely for statistical or analytical convenience and do not necessarily express a judgment about the stage of
development reached by a particular country or area in the development process. The major country groupings used
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in Annex I of this Report.
The boundaries and names shown and designations used on the maps presented in this publication do not imply of-
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UNITED NATIONS PUBLICATION
UNCTAD/TIR/2012
Sales No. E.12.II.D.13
ISSN 2076-2917
ISBN 978-92-1-112856-7
e-ISBN 978-92-1-055887-7
Copyright © United Nations, 2012
All rights reserved. Printed in Switzerland

iiiPREFACE
PREFACE
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of our time. Yet for many individuals in the developing world, access is still a major challenge, hindering their ability
to learn
how to use technologies that would improve their lives and promote enterprise development. That challenge is
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insecurity, environmental threats and job creation.
Bridging the technological divide has become a core concern of the
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The increasing capacity of a growing number of countries in the South is a promising dynamic that signals the begin-
ning of a new era in global development.
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help to address the technological divide.
7KH 817$' Technology and Innovation Report 2012 focuses on how South-South collaboration can help address
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I encourage governments and development partners to carefully consider the report’s recommendations as we con-
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BAN Ki-moon
Secretary-General
United Nations

iv TECHNOLOGY AND INNOVATION REPORT 2012
ACKNOWLEDGEMENTS
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v217(176
CONTENTS
Note...............................................................................................................................................................ii
Preface .........................................................................................................................................................iii
Acknowledgements......................................................................................................................................iv
Contents....................................................................................................................................................... v
List of abbreviations.....................................................................................................................................xi
Overview ....................................................................................................................................................xiii
CHAPTER I THE IMPORTANCE OF THE SOUTH .............................................................. 3
A. BACKGROUND....................................................................................................................................................3
B. SOUTH-SOUTH COOPERATION: KEY ARGUMENTS .......................................................................................6
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2. South-South investment as a driver of development ................................................................................8
C. THE IMPORTANT ROLE OF THE SOUTH IN TECHNOLOGICAL LEARNING AND INNOVATION ................11
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a. Emerging countries ..........................................................................................................................
b. Technological collaboration ..............................................................................................................
c. Technology transfer..........................................................................................................................
d. Innovation capacity ..........................................................................................................................
D. ORGANIZATION OF THE REPORT....................................................................................................................16
CHAPTER II THE EMERGING LANDSCAPE OF TECHNOLOGY AND INNOVATION
EXCHANGE IN THE SOUTH....................................................................... 21
A. INTRODUCTION .................................................................................................................................................21
B. INCREASE IN IMPORTS OF CAPITAL GOODS FROM THE SOUTH...............................................................22
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C. IMPLICATIONS OF ONGOING SOUTH-SOUTH EXCHANGE FOR TECHNOLOGY AND INNOVATION
CAPACITY ...........................................................................................................................................................35
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2. The leading importers, exporters and innovators in the South..................................................................
a. Manufacturing productivity and technological progress ....................................................................
b. Participation in GPNs and technological learning..............................................................................
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D. CHAPTER SUMMARY ........................................................................................................................................42

vi TECHNOLOGY AND INNOVATION REPORT 2012
CHAPTER III ASSESSING ONGOING SOUTH-SOUTH TECHNOLOGICAL COLLABORATION:
EXAMPLES AND POLITICAL INITIATIVES .................................................... 47
A. INTRODUCTION .................................................................................................................................................47
B. INTER-FIRM TECHNOLOGICAL COLLABORATION........................................................................................47
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2. Renewable energy technologies.............................................................................................................
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C. PUBLIC SECTOR TECHNOLOGICAL COLLABORATION................................................................................50
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a. Embrapa..........................................................................................................................................
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c. SENAI..............................................................................................................................................
2. India ......................................................................................................................................................
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c. India’s collaboration on RETs development.......................................................................................
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a. Chinese-Angolan ICT infrastructure development collaboration ........................................................
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a. Programme for strengthening capacities for the development of technological projects in
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organisms in Peru ............................................................................................................................
c. Course in non-destructive practices ................................................................................................
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D. MAJOR GOVERNMENT INITIATIVES FOR SOUTH-SOUTH TECHNOLOGICAL COLLABORATION ...........58
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a. BRICS summits................................................................................................................................
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a. Africa ..............................................................................................................................................
i. Africa’s Science and Technology Consolidated Plan of Action .....................................................
ii. African Economic Community .....................................................................................................
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b. Asia.................................................................................................................................................. 62
i. The Association of Southeast Asian Nations ................................................................................ 62
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collaboration ....................................................................................................................................

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E. IMPACTS OF ONGOING ACTIVITIES ON TECHNOLOGY AND INNOVATION CAPACITY ............................65
F. CHAPTER SUMMARY ........................................................................................................................................66
CHAPTER IV HOW CAN THE SOUTH PROVIDE A NEW IMPETUS FOR BUILDING
INNOVATIVE CAPACITY? .......................................................................... 73
A. INTRODUCTION...................................................................................................................................................73
B. PRINCIPLE 1: INTEGRATING THE TECHNOLOGICAL NEEDS OF DEVELOPING COUNTRIES INTO
SOUTH-SOUTH EXCHANGES...........................................................................................................................75
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2. Targeting internal and external constraints on building capabilities .........................................................
a. Internal constraints on building capabilities.......................................................................................
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b. External constraints on learning and building capabilities..................................................................
C. PRINCIPLE 2: SHARING EXPERIENCES IN BUILDING INNOVATION CAPABILITIES THROUGH
PROACTIVE POLICIES ..................................................................................................................................................81
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a. The role of the State in promoting technological learning.................................................................. 82
b. Appropriate technologies for technological catch-up........................................................................
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ii. Technological collaboration in Bangladesh’s pharmaceutical sector ............................................. 86
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D. PRINCIPLE 3: PROMOTING LEARNING THROUGH ALLIANCES AND TECHNOLOGY TRANSFER...........87
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2. Technology transfer and developing countries........................................................................................
E. PRINCIPLE 4: MAKING DEVELOPING-COUNTRY FDI MORE TECHNOLOGY ORIENTED..........................91
F. PRINCIPLE 5: POOLING RESOURCES OF DEVELOPING COUNTRIES TO ADDRESS COMMON
TECHNOLOGICAL CHALLENGES.....................................................................................................................91
G. LEVERAGING THE SOUTH FOR TECHNOLOGY AND INNOVATION: POLICY INCENTIVES AND
ACTIONS .............................................................................................................................................................92
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a. Coordinating local and regional innovation policies with South-South collaboration initiatives ...........
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c. Policy incentives in emerging countries for a greater technological focus .........................................
i. Adopt policies that promote a long-term technological orientation ...............................................
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2. Adopting policies that promote technological alliances and collaborations..............................................
a. Technological learning through public procurement ..........................................................................
b. Strengthening and promoting technological alliances .......................................................................
i. Competition policy.......................................................................................................................
ii. Contract enforcement..................................................................................................................
iii. Public subsidies...........................................................................................................................

viii TECHNOLOGY AND INNOVATION REPORT 2012
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i. South-South research and product development hubs ................................................................
ii. South-South pooling of supply and demand................................................................................
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ii. Co-investment with private investors in innovative enterprises....................................................
iii. Financing for collaboration between private and public enterprises ............................................
c. Sharing of existing information on innovation and technologies .....................................................
d. Coordination with other regional initiatives......................................................................................
H. SUMMARY ........................................................................................................................................................101
EPILOGUE .......................................................................................................... 105
REFERENCES .......................................................................................................... 108
ANNEX I .......................................................................................................... 117
ANNEX II .......................................................................................................... 119
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xii TECHNOLOGY AND INNOVATION REPORT 2012
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xiiiOVERVIEW
OVERVIEW
I. SOUTH-SOUTH COOPERATION IS
BECOMING INCREASINGLY IMPORTANT
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the process of industrial catch-up, it is expected that
the new growth poles will increasingly contribute to a
changing dynamics in international relations. A process
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has been followed by accelerated industrial
growth in a newer set of what are often referred to as
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rica. This ongoing but punctuated process is expected
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Economic expansion and growth in these countries is
attributable to several important and interrelated factors:
their growing capabilities in manufacturing and services,
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RSSRUWXQLWLHV DULVLQJ IURP JOREDOL]DWLRQ ,Q DGGLWLRQ ULVLQJ
per capita incomes and concomitant growth of domestic
demand have further boosted their growth performance.
The steady economic growth of these countries has
translated into an increase in South-South cooperation in
trade, investment and technology over the past two dec-
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partners with other developing countries in the 2000s.
2QJRLQJ 6RXWK6RXWK FRRSHUDWLRQ LV QRW UHVWULFWHG WR
economic factors alone. Some developing countries,
along with their strengthening economic clout, are con-
tributing towards reshaping global trade, aid and eco-
QRPLF UHODWLRQV 7KLV LV SDUWO UHƅHFWHG LQ WKHLU LQFUHDVLQJ
contributions to development cooperation and assis-
tance. Recent studies estimate that development assis-
tance by developing countries has been growing stead-
LO DPRXQWLQJ WR ELOOLRQ LQ 2('

2
These developments point towards the emergence of
a new paradigm for international development, which
could extend the existing boundaries of engagement to
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GHYHORSHG FRXQWULHV /'V

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1. Greater South-South cooperation could
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Rising South-South trade and investment trends have
been viewed positively as a signal that some developing
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LQ GHYHORSLQJ FRXQWULHV 7KH OLWHUDWXUH LGHQWLƄHV WZR PDLQ
aspects of cooperation among developing countries.
First, such cooperation would help the South to decou-
ple from the global cyclical trends of growth, thereby
promoting a new form of stability in the global economic
system. Second, since the emerging countries are still
in their development phase, they are better placed to
understand the problems of development, particularly
in the current global context, and could provide a new
model of cooperation and technical assistance in relation
for developing countries.
Moreover, growing South-South cooperation carries with
it the promise that it could be channelled into address-
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WLDO RI 6RXWK6RXWK FRRSHUDWLRQ ZLOO UHTXLUH VLJQLƄFDQW
changes in the way the global economy is governed, to
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to achieve this will also need to be fully explored through
policies and practices at the national and regional levels.
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Report – TIR 2012 t DUJXHV WKDW WKH WLPH LV ULSH WR PRYH
beyond analysing current trends in South-South trade
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how and to what extent South-South cooperation could
help developing countries overcome certain obstacles
to economic expansion and growth in order to achieve
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tinues to elude the global community, is to bridge the
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and inclusive growth across the developing world.
2. The South can complement the North
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within economic transactions, and there is no single in-
dicator that measures them holistically. A long history
of empirical research has uncovered a number of inter-
national factors shaping the process of technological
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QLƄFDQW FRQWULEXWRU WR WHFKQRORJLFDO OHDUQLQJ DQG FDSDFL-
ty-building is the import of capital goods. Participation in
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that can promote learning and the building of capabili-

xiv TECHNOLOGY AND INNOVATION REPORT 2012
WLHV WKURXJK WHFKQRORJLFDO VSLOORYHUV WR ORFDO ƄUPV HLWKHU
directly through licensing and technology transfer, or in-
GLUHFWO WKURXJK WDFLW NQRZKRZ DFFXPXODWLRQ E ORFDO
personnel. These are often supported by other means
such as copying, interacting with foreign clients on de-
VLJQ VWDQGDUGV DQG TXDOLW UHTXLUHPHQWV DQG FROODERUD-
tion in joint ventures.
The impact of these channels on the building of capabili-
ties depends on the presence of some level of absorptive
capacity within countries. But since institutions in many
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WKH DUH OLNHO WR EH FKDOOHQJHG LQ WKHLU TXHVW WR XVH 6RXWK
South trade and investment to build their technological
capabilities and promote activities leading to structural
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In order to overcome these limitations proactive policies
are needed at various levels of South-South exchange.
Emerging countries have used a variety of measures to
overcome barriers to trade and intellectual property rights
,35

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which can provide important lessons for other develop-
ing countries. Their successful experiences show not only
how technological capabilities can be built, but also what
policy measures could potentially be used to promote
national development in the context of the existing multi-
lateral trade regime. The similarity of their developmental
experiences is important, deriving from their past path-
dependent constraints on promoting sustainable devel-
opment.
Sharing of experiences amongst developing countries
and strengthening their collaboration remains essential
and relevant for countries that are still grappling with
ways to create harmonious and coherent local innova-
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both policy and scholarly analyses have begun to give
greater attention to what lessons can be drawn from
experiences of emerging countries for development in
general, and the process of capabilities building, in par-
ticular.
A second and perhaps more appropriate advantage of
developing countries for fostering technological learning
in the South is that most of them have followed similar
pathways in building their capabilities: from reverse engi-
neering to incrementally innovating in products and pro-
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and operating at the technological frontier itself. Even in
the developing countries that can be termed as emerg-
ing, while there are a number of industries that are at
the technological frontier globally, many other industries
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those prevailing in other developing countries, including
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tries are still confronted with some basic issues relating
to promoting the technological absorptive capacities of
their systems as a whole.
The similarity of many of these challenges to innovation
lends support to the view that the technologies produced
by developing countries may often be much more acces-
VLEOH t DQG FRQWH[WXDOO DSSURSULDWH t WR RWKHU GHYHORSLQJ
FRXQWULHV DQG ƄUPV WKXV KLJKOLJKWLQJ WKH LPSRUWDQFH RI
promoting greater South-South collaboration in this area.
Collaboration on technology and innovation is perhaps
one of the most critical components of South-South soli-
darity, offering a real promise of sustainable development
throughout the developing world. However, because such
FROODERUDWLRQ VWLOO WDNHV SODFH EHWZHHQ GHYHORSLQJ FRXQ-
tries at very different levels of development, it necessarily
involves some pressures as well as opportunities for many
developing countries. Pressures include conforming with
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as obligations relating to climate change mitigation and
adaptation, the transition towards a green economy, and
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industrial development.
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Given the potential of South-South cooperation to pro-
mote technological learning, there is clearly a renewed
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how ongoing South-South cooperation could be orient-
ed to foster technological and innovation capacity, and
how the technology needs of all developing countries
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of cooperation and exchange.
In the classical development economics discourse, eco-
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ing and combining complementary factors to shift the
production structure of economies and extend the pro-
duction frontier. Those factors are capital accumulation,
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the context of developing countries, however, economic
growth, on the one hand, and technology and innova-
tion capacity on the other have a mutually reinforcing
relationship. Technology and innovation capacity play an
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that results from changes in the structure of production.
Economic growth often enables technological learning
and greater sophistication, and at the same time, tech-
nological capabilities are critical for ensuring that growth
is of a productive nature and can be steadily maintained.

xvOVERVIEW
+RZHYHU WKHVH PXWXDOO VXSSRUWLYH OLQNDJHV GR QRW
emerge spontaneously. Particularly, in the context of
South-South exchanges, while there is potential for con-
tinued growth of trade and investment that can result in
technological learning, much still needs to be done to
harness that potential. )LUPV VHHNLQJ WR H[SDQG WKURXJK
D VHDUFK IRU QHZHU PDUNHWV DQG HFRQRPLHV RI VFRSH
and scale may have only limited incentives to engage
LQ FROODERUDWLRQV MRLQW YHQWXUHV ZLWK KRVWFRXQWU ƄUPV
7KHVH LQFHQWLYHV DUH XVXDOO PDUNHWEDVHG GHSHQGLQJ
RQ WKH VSHFLƄF DWWULEXWHV RI WKH KRVW FRXQWU ƄUPV WKDW
PDNH WKHP DWWUDFWLYH SDUWQHUV 7KLV FRXOG LQFOXGH WKHLU
H[WHQVLYH PDUNHWLQJ DQG GLVWULEXWLRQ QHWZRUNV LQ WKH
KRVW FRXQWULHV RU WKHLU VSHFLƄF 5 ' FDSDELOLWLHV RU WHFK-
nological expertise, or their ability to produce particular
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LQFHQWLYHV RQO HQWLFH ƄUPV WR HQWHU LQWR DOOLDQFHV ZLWK
ƄUPV LQ KRVW FRXQWULHV WKDW KDYH VRPH OHYHO RI H[SHUWLVH
as demonstrated by the value addition they create in re-
turn. Relying on such incentives for technological learn-
LQJ LV PLVOHDGLQJ VLQFH WKH DUH QRW VXIƄFLHQW WR HQWLFH
ƄUPV RQ WKHLU RZQ WR HQWHU LQWR WHFKQRORJLFDO OHDUQLQJ
alliances with partners who have little or low levels of
technological expertise.
0RUHRYHU GHVSLWH WKH VLJQLƄFDQFH RI WKHVH LVVXHV WKH
literature on South-South technological cooperation is
TXLWH VFDUFH DQG JHQHUDOO IRFXVHV RQ KRZ SUHVVLQJ
international challenges, such as public health and cli-
mate change, can be addressed through cooperation
amongst developing countries. The analysis tends to
be rather general, and data on issues of technological
change and innovation capacity are scarce or not easily
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contribute new policy insights in this complex area.
The Report argues that the similarity of development ex-
SHULHQFHV RI WKH FRXQWULHV RI WKH 6RXWK SDUWLFXODUO LQ
SURPRWLQJ LQQRYDWLRQ FDSDFLW

DQG WKH FRQWH[WXDO DS-
SURSULDWHQHVV RI WKHLU WHFKQRORJLHV PDNHV WKHP HVVHQ-
tial complements to existing North-South interactions.
The central message of TIR 2012 is that developing
countries, particularly emerging countries, can be im-
portant partners for promoting technological capabilities
in the South, and therefore analysing how South-South
collaboration for technology and innovation can be pro-
moted in a systematic way to promote inclusive sustain-
able development should be a priority.
Hence, the Report focuses on whether South-South
exchanges could lead to building technological capabili-
ties, and under what circumstances. From an analysis of
the current patterns of South-South exchanges on tech-
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WLI NH LVVXHV LQ WKLV DUHD DQG GHULYH EHVW SUDFWLFHV IRU
moving forward in fostering South-South collaboration
on technology and innovation.
II. A RICH LANDSCAPE OF SOUTH-SOUTH
EXCHANGE IS EMERGING
The growing economic and commercial interests of
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expansion and some level of technological collaboration
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tions, imports of capital goods and growing participation
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not only relating to technical aspects of production, but
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)', DQG OLFHQVLQJ FDQ DOVR KDYH LPSRUWDQW LPSOLFDWLRQV
IRU WHFKQRORJ DFTXLVLWLRQ DQG OHDUQLQJ LQ VRPH FRQ-
texts. However, to what extent this holds, and whether
economic growth in the South and the resulting rise in
South-South trade and investment do indeed contribute
to greater technological learning and development of in-
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tries as major partners of other developing countries for
trade in capital goods. Capital goods imports are not
only inputs for the expanding economic activities and
consumption patterns in these countries, they also show
that developing countries, particularly emerging coun-
tries, are increasingly offering competitive products in a
variety of industries involving a range of technologies.
$YDLODEOH GDWD VKRZ WKDW WKHUH KDV EHHQ D PDUNHG LQ-
crease in trade in capital goods among developing coun-
WULHV VLQFH WKH PLGV ,QGHHG RYHUDOO WUHQGV VKRZ D
clear shift away from developed countries as sources of
such goods for developing countries during the period
t HVSHFLDOO DIWHU WKH HFRQRPLF VORZGRZQ
in 2008. As part of rising South-South trade, the share
of developing countries’ imports from other developing
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WR }SHU FHQW LQ ZKLFK LQGLFDWHV WKDW GHYHO-
oping countries have become the main sources of capi-
tal goods for other developing countries.
Growing imports of capital goods by developing coun-
tries implies the expanding capacity in the South to pro-
duce goods, at least in some countries. It also shows
that imports of these goods by other developing coun-
tries are on the rise as part of their increasing efforts
to promote productive capacity. As noted earlier, such
imports are important for building productive capacity,
since they can result in the transfer of technology to the

xvi TECHNOLOGY AND INNOVATION REPORT 2012
extent that the imported goods are studied for design
characteristics and reverse engineering. They can also
directly improve productivity when they are employed in
production processes. The impact of imports of capital
goods in terms of enhancing productivity in developing
FRXQWULHV LV UHƅHFWHG LQ SDUW E WKH LQFUHDVLQJ VKDUH RI
manufacturing exports from developing countries as a
whole, a large part of which is also sourced to other de-
veloping countries.
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increase in imports of high-technology-intensive goods
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technological intensity of South-South imports shows
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products imported by developing countries as a group
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RPSDULQJ WKH OHYHO RI WHFKQRORJLFDO LQWHQVLW ORZ PH-
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technology intensity. These trends strengthen the notion
that developing countries are increasingly able to export
technology-intensive goods globally, and particularly to
the South.
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A predominant factor explaining the rising trend in tech-
nology imports is the growth of GPNs, driven by some
of the more technologically advanced developing coun-
tries. Another factor is the increasing domestic demand
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ing purchasing power of their growing middle classes,
which is leading to a surge in imports of technological
products from other countries in the South into these
economies. Many of these imports, as data trends show,
serve to meet growing demand driven by the expand-
ing economic activities and consumption patterns in
these countries. Moreover, some emerging countries are
able to manufacture several high-technology products
at competitive prices, resulting in a shift in developing-
country imports from developed countries to developing
countries.
However, these trends are uneven across regions, and
are largely explained by the existence of production
QHWZRUNV LQ FRXQWULHV LQ (DVW $VLD DQG PRUH UHFHQWO LQ
South-East Asia and South Asia. These countries have
progressed in technological sophistication as illustrated
by their ability to produce high- and medium-technology-
intensive products using advanced processes. This fur-
ther facilitates their ability to absorb newer products that
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such as Southern Africa. Similar trends can be observed
with respect to medium-technology-intensive imports.
Generally, a country can import capital goods so long as
it can pay for them. However, what remains important for
productivity growth is how these imports are channelled
effectively into generating future income. This relates to
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nologies embodied in these imports to generate produc-
tivity growth. So long as this is possible and evident, it
would lead to the conclusion that such imports of capital
goods are contributing to building technological capabili-
WLHV LQ GHYHORSLQJ FRXQWULHV 2Q WKLV DVSHFW WZR WUHQGV
stand out.
First, developing countries that already have a minimum
level of technological capabilities are engaging in exten-
sive trade in capital goods with other countries of the
South. This points to the importance of some level of
technological capabilities to participate in capital goods
trade, underscoring the fact that while any country can
import capital goods, those that consistently participate
in trade in such goods use many of these imports to
enhance their production capacities.
The second trend,
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D VLJQLƄFDQW RYHUODS EHWZHHQ FRXQWULHV WKDW LPSRUW FDSL-
tal goods and those that export technology-intensive
goods. Hence, a sub-set of developing countries that
already possess some level of technological capabilities
are able to leverage ongoing trade and investment to fur-
ther boost their technological capabilities and innovation
capacities.
This does not completely exclude the presence and im-
portance of technological transactions in other countries
of the South. But it points to an important result that
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lower ability to pay and the lower technological intensity
of their overall economic activity.
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show a widening gap among developing countries, con-
ƄUPLQJ WKH RYHUDOO WUHQGV SUHVHQWHG KHUH UHJDUGLQJ WKH
WHFKQRORJLFDO FDSDFLW RI FRXQWULHV 'HYHORSLQJ FRXQ-
tries as a group increased their imports of machinery
DQG WUDQVSRUW HTXLSPHQW DV D VKDUH RI JOREDO LPSRUWV RI
WKLV FDWHJRU IURP }SHU FHQW LQ WR }SHU FHQW LQ
+RZHYHU FRXQWULHV ZLWK ORZHU WHFKQRORJLFDO FD-
SDFLWLHV VXFK DV D ODUJH QXPEHU RI /'V LQFUHDVHG WKH
VKDUH RI WKHLU LPSRUWV RI WKLV FDWHJRU IURP RQO }SHU
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lower than that of other developing countries.
Among
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xviiOVERVIEW
LQJ /'V ODUJHO DFFRXQWLQJ IRU WKH LQFUHDVH LQ WKHVH LP-
ports, showing that such imports are biased towards the
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6RXWK6RXWK )', KDV EHHQ ULVLQJ
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years, increasing the possibilities for it to be leveraged
for technological learning in various other develop-
ing countries. The importance of developing countries
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steadily over the past four decades,6
although it declined
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and economic crisis. The share of developing countries
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GHFOLQHG WR }SHU FHQW IRU WKH HDU
The analysis of
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tions:
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WKH VKDUH RI JURVV Ƅ[HG FDSLWDO IRUPDWLRQ LQ FRXQ-
WULHV (DVW $VLD DFFRXQWV IRU PRVW RI WKH )', RXW-
ƅRZV IURP WKH 6RXWK IROORZHG FORVHO E 6RXWK
(DVW $VLD DQG /DWLQ $PHULFD
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WLRQ RI RXWZDUG )', IURP GHYHORSLQJ FRXQWULHV KDV
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PHQWV LQ PDQXIDFWXULQJ DQG VHUYLFHV 2I WKLV ODUJH
shares are directed at other developing countries.
(VWLPDWHV LQGLFDWH WKDW LQ WKH HDUO V DOPRVW
three fourths of developing-country investments
abroad went to the manufacturing sector, which
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manufacturing, services account for a large share
RI WKH )', RXWƅRZV IURP GHYHORSLQJ FRXQWULHV
much of which are directed at other developing
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VHUYLFHV DFFRXQWHG IRU QHDUO }SHU FHQW RI
VXFK )', RI ZKLFK PRUH WKDQ }SHU FHQW ZHQW WR
developing countries.
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with a clear emphasis on the services and manufactur-
ing sectors. Such a sectoral focus would normally imply
a potential for technological learning. However, estimates
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facturing originates mainly from emerging countries, par-
ticularly East Asian and South-East Asian countries, and
is largely directed to those developing countries that pos-
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the capacity to source such investments by virtue of their
technological capabilities. This is true of a large share of
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tries are also directed towards East and South-East Asia,
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thus helps to cement and enhance the already existing
technological capacity of these developing countries as
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have direct technological impacts.
III. THE POTENTIAL OF SOUTH-SOUTH
COOPERATION FOR TECHNOLOGICAL
LEARNING STILL NEEDS TO BE
HARNESSED
Technological change and economic growth have a mu-
tually reinforcing relationship in developing countries.
Sustainable economic growth that is built on productivity
increases in these countries does not fully rely on fron-
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on the possibility to learn and build upon already exist-
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manufacturing, but also across a range of activities that
support overall industrial development, including in mar-
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frastructure and learning activities. This in turn increases
absorptive capacity and the ability to adapt and apply
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to a gradual increase in productivity in all sectors. Such
growth is intrinsically tied to how production structures
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However, much still needs to be done in order to har-
ness this critical relationship in developing countries. For
instance, an argument that has often been advanced
is that the ongoing growth and shift in production pat-
terns in some of the emerging countries, from low-end
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opened up opportunities for other developing countries,
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However attractive this might be, it does not occur au-
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investments in building absorptive capacity. This neces-
sitates a fundamental shift in the underlying conditions

xviii TECHNOLOGY AND INNOVATION REPORT 2012
of many developing countries, with a particular focus on
factors that promote technological learning and innova-
tion capabilities in those countries. Such a shift should
be consistent with their comparative advantages and lo-
cal demand. This challenge in leveraging technological
learning through ongoing economic growth processes
is demonstrated by the analysis of data and case study
evidence in TIR 2012. The conclusions that lend strength
to this observation are as follows:
t 7KH HPSLULFDO HYLGHQFH RQ RQJRLQJ 6RXWK6RXWK
technological exchange shows that the surge of
economic growth in developing countries, par-
ticularly emerging countries, has been made pos-
sible in large part by their growing technological
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capital goods imports in recent times. Although
capital goods imports by developing countries are
growing, and are considered to be an indication of
technological learning, the trends show that a large
share of the capital goods exported and imported is
concentrated in a sub-set of developing countries.
These are countries that have some level of techno-
logical capabilities to integrate into GPNs, and their
level of economic growth enables them to import
FDSLWDO JRRGV 2Q WKH RWKHU KDQG D ODUJH QXPEHU
RI GHYHORSLQJ FRXQWULHV SDUWLFXODUO /'V DUH QRW
major importers or exporters of capital goods.
t 7KH JURZLQJ PDQXIDFWXULQJ FDSDELOLWLHV RI D QXP-
EHU RI GHYHORSLQJ FRXQWULHV SDUWLFXODUO %UD]LO
China, India and South Africa, has enabled them
to increase their exports of manufactured goods.
It has also enabled them to participate in GPNs in
both low-cost manufacturing and high-technology,
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well as newer technologies and the move towards
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opportunities for these countries to use their existing
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and promote technological learning.
t )', WUHQGV DUH VLPLODU WR WHFKQRORJLFDO HPSRZHU-
ment trends of the South, which tends to be con-
centrated in some countries, mainly East Asian
FRXQWULHV DV ZHOO DV FRXQWULHV VXFK DV %UD]LO
China and India. Emerging countries account for
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including services and health, they tend to be
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changes among some countries in those sectors.
This shows that a few developing countries are
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logical exchange.
t A review of case study evidence on South-South
technological collaborations conducted in the Re-
SRUW VKRZV WKDW 6RXWK6RXWK LQWHUƄUP WHFKQRO-
ogy-related initiatives seem to be motivated mainly
by economic considerations or proactive govern-
ment incentives, or both. In contrast, South-South
public sector and government-driven collaborations
are more wide-ranging in nature, but at the same
WLPH WKH IRFXV PRUH RQ VFLHQWLƄF DQG WHFKQLFDO DV-
pects rather than on technological collaboration or
ƄUPOHYHO OHDUQLQJ 7KHUH DUH DOVR D YDULHW RI JRYHUQ-
ment initiatives for promoting technology exchange
and learning, both regional and in the context of
South-South relations, including the annual sum-
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better serve the needs of developing countries if
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technological capacity-building. Also, they should
be more closely coordinated with government policy
and projects within individual countries. Currently,
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conducted by national agencies are often isolated
from technological collaborations involving public
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5 ' DQG WUDLQLQJ DFWLYLWLHV LQ VSHFLƄF VFLHQWLƄF GLV-
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these need to be properly coordinated.
t :KLOH VRPH 6RXWK6RXWK WHFKQRORJLFDO FROODERUD-
tion is evident, most countries are limited by the
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WR EHQHƄW PRUH IURP RQJRLQJ 6RXWK6RXWK H[-
changes. Additionally, the South is contributing to
DQ LQFUHDVLQJ FRPPRGLW GHSHQGHQFH RI /'V
which reduces their ability to structurally diversify
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effect of the economic boom in the emerging coun-
tries, there is a need to closely align the interests of
all developing countries towards bridging the tech-
nological divide.
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that have been collaborating the most on technol-
ogy and innovation, supportive national innovation
environments have been contributing to building
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countries, positive developments in factors such
DV 5 ' LQYHVWPHQWV HGXFDWLRQ SDWHQWLQJ DQG
licensing trends, the number of researchers per
million people, infrastructure and ICTs are further
strengthening their innovation capabilities.

xixOVERVIEW
These results point to two fundamental issues. First,
ongoing South-South collaboration could potentially
provide more opportunities for developing countries,
LQFOXGLQJ /'V WR EHQHƄW WHFKQRORJLFDOO E OHYHUDJ-
ing the ongoing process of economic growth explic-
itly to promote technological change. For example, the
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FRQFHQWUDWLRQ 6RXWK6RXWK )', FRXOG EHFRPH PRUH
versatile in terms of its ability to be combined with ca-
pability-building approaches since it is largely concen-
trated in manufacturing and services. The rising share
RI )', IURP GHYHORSLQJ FRXQWULHV LQWR VHFWRUV VXFK DV
services also creates opportunities for technological
collaboration in these sectors, which is now currently
not being fully harnessed.
A review of ongoing initia-
tives in this area shows that there are some interest-
LQJ FDVHV RI VFLHQWLƄF DQG WHFKQLFDO FROODERUDWLRQ ERWK
public-sector-based and private-sector-led. But these
too do not seem to demonstrate the full potential of
South-South collaboration for technological learning
and innovation.
:KLOH LW FRXOG EH DUJXHG WKDW 6RXWK6RXWK WHFKQRORJL-
cal collaboration is still in its initial phases, and therefore
ODFNV FRRUGLQDWHG HIIRUWV LW VWLOO VHHPV DSSURSULDWH WR
DGGUHVV WKH NH FKDOOHQJH RI IRVWHULQJ VXFK collabo-
ration systematically. This automatically leads to the
second issue, namely, how to ensure that an ap-
propriate level of emphasis is given to this by devel-
oping-country governmental initiatives and that the
various platforms on South-South collaboration do in
fact result in greater technological learning. This calls
IRU PHDVXUHV WKDW SURPRWH FORVHU OLQNDJHV EHWZHHQ
JRYHUQPHQW DJHQGDVHWWLQJ DQG RQJRLQJ VFLHQWLƄF
and technological collaboration initiatives as well as
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IUDPHZRUN RI 6RXWK6RXWK FROODERUDWLRQ
IV. A FRAMEWORK TO PROMOTE SOUTH-
SOUTH COLLABORATION ON TECHNOLOGY
AND INNOVATION IS NEEDED
In order to effectively address these issues, TIR 2012
SURSRVHV D VHW RI SULQFLSOHV DURXQG ZKLFK D IUDPHZRUN
of South-South collaboration for technology and inno-
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DEOH WR DGGUHVV WKH FKDOOHQJHV LGHQWLƄHG LQ WKLV 5HSRUW
To begin with, short-term objectives of trade openness
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should be consistent with longer-term technological de-
velopment goals of the developing world as a whole. A
IUDPHZRUN RQ 6RXWK6RXWK FROODERUDWLRQ FRXOG WKHUHIRUH
help to align the interests of all developing countries in this
highly relevant area. Moreover, although technology and
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JHQFH

SURFHVVHV WKURXJK ZKLFK GHYHORSLQJ FRXQWULHV
absorb ideas and concepts from the industrial frontier,
the accumulation of technological capabilities will not
be possible without express policy and institutional sup-
port by the international community and by the develop-
ing countries themselves. Therefore, as part of such a
IUDPHZRUN TIR 2012 proposes that developing coun-
tries strengthen their cooperation with a particular focus
on collaboration for technology and innovation. A frame-
ZRUN WKDW SURPRWHV LQWHUDFWLRQ DW WKUHH GLIIHUHQW OHYHOV LV
suggested:
t ([FKDQJH RI H[SHULHQFHV LQ SROLFPDNLQJ DQG LQ
GHYLVLQJ SROLF IUDPHZRUNV IRU WHFKQRORJ DQG LQ-
novation;
t 7HFKQRORJ H[FKDQJH DQG ƅRZV DLPHG DW LQFUHDV-
ing the technology absorptive capacity of the pri-
vate and public sectors; and
t 7UDQVIHU RI WHFKQRORJLHV LQ NH VHFWRUV RI LPSRU-
tance to public well-being, such as agriculture,
health, climate change and renewable energy.
6XFK D IUDPHZRUN IRU 6RXWK6RXWK FROODERUDWLRQ RQ
technology and innovation needs to move beyond pri-
ority setting and political declarations; it should pro-
pose a clear road map for action. The Report articu-
lates a set of principles that could form the basis for
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derived from some important issues prevailing in the
context of technology and innovation exchange glob-
ally and among developing countries. These are dis-
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7KH WHFKQRORJLFDO QHHGV RI DOO GHYHORSLQJ
FRXQWULHV VKRXOG EH EHWWHU LQWHJUDWHG LQWR
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Closing the gap between formal and informal production
structures in a large number of developing countries,
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calls for more proactive engagement in addressing their
technological needs in a coherent and dynamic way.
This form of engagement not only necessitates great-
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competence-building within countries; it also needs to
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and technological capacity-building through, for exam-
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in developing countries is therefore essential for trans-
forming their economies towards activities that focus
on greater value addition and higher returns on invest-
ment.

xx TECHNOLOGY AND INNOVATION REPORT 2012
7KH H[SHULHQFHV RI GHYHORSLQJ FRXQWULHV LQ
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Emerging countries have pursued a variety of industrial
and development policies and strategies to promote
technological catch-up. Innovation policies are essential
components of such strategies. Innovation policy frame-
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centives provided by governments to promote interactive
learning and collaboration among all economic and non-
economic actors in the system. Such policies have been
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obstruct technological change, and which are pervasive
and widespread, particularly in developing countries.
Sharing these policy experiences is relevant for two main
reasons. To begin with, they are useful in order to glean
general lessons and derive best practices on how de-
veloping countries can best promote economic catch-
up. Secondly, they can also be highly instructive in de-
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measures will not be applicable in all countries univer-
sally, sharing these experiences would provide an array
of policy options for developing countries that could be
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with innovation policy, and coordinating research be-
tween universities and industry, among others.
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WUDQVIHU SULQFLSOH

A critical shift in South-South collaboration on technol-
ogy and innovation is needed, with a focus on promot-
ing technological learning based on the South’s own rich
and diverse experiences, as highlighted in the Report.
Some of the means of such learning, such as technology
transfer, have been demanded by developing countries
in the international discourse for decades. Technologi-
cal development implies more than just promoting the
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goods. As mentioned above, what is more crucial is the
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which promotes technological progress.
Mechanisms for technological collaboration have tradi-
tionally focused on a North-South dimension, but there
are also opportunities to develop South-South mecha-
nisms for the sharing of experiences on technological
capacity-building and transfer. Indeed, these could
be particularly appropriate in the developing-country
context, given that these countries share common
development challenges. Such mechanisms could
complement ongoing efforts to foster North-South
technology transfer by placing an explicit emphasis
on technological learning and building local capacities
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strategic technological alliances between some devel-
oping countries, particularly the emerging countries
on the one hand, and other developing countries, on
the other, to promote learning in sectors that already
have some level of domestic technological capabilities.
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is another instrument that the South could use to pio-
neer different solutions by leading by example.
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LQ RUGHU WR VXSSRUW WKH EXLOGLQJ RI
WHFKQRORJLFDO FDSDELOLWLHV SULQFLSOH

0DQ FRXQWULHV KDYH OHYHUDJHG )', WR SURPRWH WKH DE-
sorption of technologies and building of innovation ca-
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within its overall industrial development strategy. There
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results in terms of building national technological capa-
bilities. Interesting examples of how governments have
SURPRWHG WKH WUDQVIHU RI WDFLW NQRZKRZ E WKH IRUHLJQ
LQYHVWLQJ ƄUP WR D ORFDO SDUWQHU DUH WKRVH RI 8JDQGD DQG
Ethiopia.
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with a variety of other policy measures. However, on a
general scale, there is often a disjunction between inno-
YDWLRQ SROLFLHV DQG )', SROLFLHV LQ FRXQWULHV 7KLV GLVMXQF-
tion needs to be addressed through an innovation policy
IUDPHZRUN WKDW DOORZV UHFLSLHQW FRXQWULHV WR UHDOL]H WKH
SRWHQWLDO RI )', IRU WHFKQRORJLFDO OHDUQLQJ
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There are a range of development challenges that con-
front all countries of the South to varying degrees. They
need technological innovations and platforms that pro-
mote a smoother transition towards a green economy,
help address climate change mitigation and adaptation,
encourage the use of sustainable energy and renewable
energy technologies, as well as help improve public health
and food security. For all these technological challenges,
common responses could be forged.
,Q DOO WKHVH DUHDV WKH OHYHO RI GRPHVWLF ƄUPVp FDSDELOLWLHV
LQ PDQ GHYHORSLQJ FRXQWULHV LV LQVXIƄFLHQW WR VXSSRUW
the creation of conventional forms of technological alli-
ances. Therefore, there is a need for new alliances that
HQDEOH WKH GHYHORSPHQW RI SDUWLFXODU NLQGV RI WHFKQRO-
ogies that are of critical importance to the developing

xxiOVERVIEW
ZRUOG 'HYHORSLQJ FRXQWULHV FRXOG DOVR KHOS WKH VKDULQJ
RI DOUHDG H[LVWLQJ NQRZOHGJH LQ LPSRUWDQW VHFWRUV DQG
industries, which until now has not been systematic. In-
stead, there is a continued reliance on North-South ex-
FKDQJHV LQ ƄQGLQJ WHFKQRORJLFDO VROXWLRQV
Not only are developing countries’ experiences in build-
ing innovation capacity particularly relevant for bridging
the technological divide, their technologies are also often
more locally adaptable in other developing countries, in-
FOXGLQJ /'V RZLQJ WR VLPLODU FRQWH[WV DQG KHQFH WKH
are more appropriate for those countries.
V. EXPLICIT POLICIES ARE REQUIRED TO
SUPPORT THE EMERGENCE OF SUCH
A COLLABORATIVE FRAMEWORK
Current discussions on technology and innovation in
the international context often revolve around how in-
ternational commitments for technology dissemination
and transfer can be fostered.
:LWKLQ VHYHUDO RI WKHVH
GLVFXVVLRQV VXFK DV WKRVH UHODWHG WR $UWLFOH

RI
the Agreement on Trade Related Aspects of Intellectual
3URSHUW 5LJKWV WKH 75,36 $JUHHPHQW

FRQVHQVXV VWLOO
QHHGV WR EH UHDFKHG RQ GHƄQLQJ DQG PHDVXULQJ WHFKQRO-
RJ WUDQVIHU :KLOH WKHVH GLVFXVVLRQV UHPDLQ LPSRUWDQW
from an overall global perspective, this Report articulates
a number of policy measures that could be implemented
at the national, regional and international levels in order
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7KH SROLF PHDVXUHV LGHQWLƄHG E WKLV 5HSRUW DUH QRW
exhaustive, but help to show the way forward. Moreo-
ver, they should not be construed as binding developing
countries, particularly emerging countries, to exacting
technological commitments. The policy measures sug-
gested here are meant to facilitate South-South tech-
nological collaboration through long-term-oriented in-
stitutions in all developing countries, whether they act
DV VXSSOLHUV RU UHFLSLHQWV RI WHFKQRORJLFDO NQRZOHGJH LQ
collaborative ventures.
ORVHO OLQN QDWLRQDO LQQRYDWLRQ SROLFLHV
WR 6RXWK6RXWK LQLWLDWLYHV
1DWLRQDO LQQRYDWLRQ SROLF IUDPHZRUNV FRXOG EH DFFRP-
panied by the following policy measures specially aimed
at encouraging South-South collaboration for technol-
ogy and innovation.
D RRUGLQDWH ORFDO DQG UHJLRQDO LQQRYDWLRQ
SROLFLHV ZLWK 6RXWK6RXWK LQLWLDWLYHV
There is often a disconnect between national and region-
al policies on technology and innovation. Furthermore,
since some developing countries have only recently
HPHUJHG DV VLJQLƄFDQW VRXUFHV RI WHFKQRORJLFDO OHDUQLQJ
many existing policy instruments do not expressly refer
to South-South collaboration in this area. This needs to
be revised in policy setting exercises, both at the national
DQG UHJLRQDO OHYHOV WR UHƅHFW WKH QHZ UHDOLW UHFRJQL]LQJ
developing countries as long-term partners in techno-
logical capacity-building.
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tional and regional levels need to be revised to incor-
SRUDWH FHUWDLQ NH LQQRYDWLRQ SULRULWLHV LQ 6RXWK6RXWK
transactions. A range of policy measures could be imple-
mented to expressly promote South-South technological
collaboration, including, but not necessarily restricted to:
u /LQNLQJ GHYHORSLQJFRXQWU )', ZLWK FOHDUO DU-
WLFXODWHG WHFKQRORJ DQG WDFLW NQRZKRZ UHTXLUH-
ments;
— Providing/using existing government funding to
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SULRULW VHFWRUV EHWZHHQ GHYHORSLQJ FRXQWULHV LQ
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— Granting special incentives and tax reductions to
ORFDO ƄUPV LQ UHWXUQ IRU HQWHULQJ LQWR MRLQW YHQWXUHV
RU MRLQW SURGXFWLRQ DUUDQJHPHQWV ZLWK ƄUPV IURP
developing countries, with a particular emphasis
RQ DFTXLULQJ WHFKQRORJLHV
u 2IIHULQJ LQFHQWLYHV WR IRUHLJQ ƄUPV IURP GHYHORSLQJ
countries, particularly emerging countries, such as
special tax cuts or government procurement as-
surances, in return for setting up production facili-
WLHV DQG WUDQVIHUULQJ NQRZKRZ WR ORFDO ƄUPV
— Providing technology incubation facilities to sup-
port new technology applications in local industry
ZLWK KHOS IURP ƄUPV LQ GHYHORSLQJ FRXQWULHV SDU-
ticularly emerging countries.
E 3URYLGH LQFHQWLYHV IRU VKLIWLQJ WRZDUGV
KLJKHU YDOXHDGGHG DFWLYLWLHV
,Q RUGHU WR PLQLPL]H WKH ULVN RI ORFDO ƄUPV UHPDLQLQJ DW
lower ends of GPNs with few or no chances of moving
up the value-added stages of production, there is a need
for explicit policy measures that support engagement in
higher value-added activities. Higher value-added activi-
ties in this context are closely associated with, but not
identical to, manufacturing although this sector is cer-
tainly essential for driving structural transformation. The
notion of higher value-added should also encompass
greater social value added through innovation activities,
which essentially relate to ensuring that innovation ac-
WLYLWLHV UHVSRQG WR ORFDO QHHGV DQG DOVR IRVWHU HTXLWDEOH
and inclusive development and are pro-poor. Innovation
funds, both at the national and sectoral levels, could help
to induce such a shift towards increased value added,
particularly in countries rich in natural resources.

xxii TECHNOLOGY AND INNOVATION REPORT 2012
F )RFXV RQ WHFKQRORJLFDO OHDUQLQJ LQ SROLFLHV RI
HPHUJLQJ FRXQWULHV
In order to ensure that technological learning is an essential
component of South-South interactions, emerging coun-
tries could introduce policy measures that help to increase
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JLHV DQG LQQRYDWLRQ 7KHVH FRXOG WDNH WKH IROORZLQJ IRUPV
— Adopting policies that promote technological en-
gagement with other developing countries from a
long-term perspective; and
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engage in technological exchange and the build-
LQJ RI WDFLW NQRZKRZ LQ ƄUPV LQ RWKHU GHYHORSLQJ
countries.
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The overall technological development of the South is a
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all developing countries and their policy strategies need
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Box 1: Institutional features of the proposed South-South Innovation and Technology Pact (SITEP)
The SITEP would support technological learning and innovation capacity across all developing countries by providing institutional
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following forms.
L

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A number of developing countries, in particular emerging countries, are increasingly producing new, state-of-the-art technologies.
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SURGXFWLRQ RI VXFK NQRZOHGJH
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GHYHORSLQJ FRXQWULHV WKDW VHHN WR MRLQ KDQGV DV D PHDQV RI SURPRWLQJ ERWK WKH GHYHORSPHQW RI GRPHVWLF OHDUQLQJ FDSDELOLWLHV
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level, or amongst countries that choose to partner across regions.
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WKRVH ZKLFK SURYLGH 5 ' VHUYLFHV RQ D SDDVRXJR EDVLV FRXOG FRQVWLWXWH DQ LPSRUWDQW VKRUW DQG PHGLXPWHUP VROXWLRQ
to some of the major problems faced by public and private sectors in developing countries.
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ORFDOUHJLRQDO PDUNHW GHPDQG 7KLV LV SDUWLFXODUO WUXH LQ LQGXVWULHV ZKHUH WHFKQRORJLFDO LQQRYDWLRQV DUH LQYHVWPHQWLQWHQVLYH
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minded countries that have similar needs within the South.
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The proposed SITEP would have a second set of policy instruments and activities that are directly geared to alleviating many of
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importance, such as pharmaceuticals, agro-processing and ICTs, could be provided with venture capital funding. Such
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t RLQYHVWPHQW ZLWK SULYDWH LQYHVWRUV LQ LQQRYDWLYH HQWHUSULVHV $ QXPEHU RI VFKHPHV FRXOG EH ODXQFKHG DW WKH UHJLRQDO OHYHO
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supported through public-private/private-private partnerships between various developing countries.
t )LQDQFLQJ IRU FROODERUDWLRQ EHWZHHQ SULYDWH DQG SXEOLF HQWHUSULVHV 6XFK DQ LQVWUXPHQW FRXOG H[SUHVVO DGGUHVV WKH ODFN RI
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(iii)Act as a platform for sharing innovation experiences and promoting policy learning.
'HYHORSLQJ FRXQWULHV FRXOG EHQHƄW HQRUPRXVO IURP EXLOGLQJ D FRPPRQ IRUXP IRU H[FKDQJH RI LQIRUPDWLRQ DERXW WKHLU QDWLRQDO
technology and innovation policies. Such a forum would enable the sharing of experiences on how countries could promote
industrial development within the parameters of the international trade and IPR regimes. The forum would provide a venue for
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often be restrictive.
The SITEP could be augmented by regional initiatives directly aimed at building innovation capacity at the regional level.
6RXUFH 817$'

xxiii
contain clear targets and milestones to be achieved in
terms of technological collaboration.
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VFLHQWLƂF FRRSHUDWLRQ ZLWK WHFKQRORJLFDO
collaboration
As the Report shows, although many developing coun-
tries are actively engaged in expanding their technical
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RI FRRUGLQDWLRQ EHWZHHQ VFLHQWLƄF DQG WHFKQLFDO FRO-
laboration provided by their agencies and the ongoing
WHFKQRORJLFDO FROODERUDWLRQV EHWZHHQ ƄUPV ,Q RUGHU WR
ensure the best results, these activities should be better
coordinated by means of a clear policy on South-South
technological collaboration set out by the governments.
Emerging countries, in particular, need to articulate long-
term strategic objectives as suggested in the aforemen-
tioned section.
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FROODERUDWLRQ DQG WHFKQRORJ WUDQVIHU
Emerging countries could provide greater incentives for
technological collaboration and transfer of technology
ZLWKLQ WKHLU SROLF IUDPHZRUNV 7KHVH LQFHQWLYHV FRXOG
WDNH WKH IROORZLQJ IRUPV
7D[ FRQFHVVLRQV WR HPHUJLQJFRXQWU ƄUPV LQ UHWXUQ
for entering into or attracting joint ventures or joint pro-
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SDUWLFXODUO /'V
*UDQW ORFDO ƄUPV VSHFLDO qGHYHORSPHQWIULHQGOr FHUWLƄ-
cates as a goodwill gesture. These can add to the cor-
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customer base across the South.
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7HFKQRORJ 3DFW 6,7(3

In order to facilitate a common, development response
to these issues, this Report suggests the pooling of tech-
nological resources by developing countries through a
comprehensive South-South Innovation and Technology
3DFW 6,7(3

7KH SURSRVHG SDFW ZRXOG EH D PHFKD-
QLVP WKDW VHHNV WR FRRUGLQDWH DQG SURPRWH D GHYHORS-
ing-country response to technology-related issues. The
SITEP should provide institutional support at three levels.
To begin with, it could promote technological learning
DW WKH ƄUP OHYHO DV DQ HVVHQWLDO FRPSOHPHQW WR RQJRLQJ
6RXWK6RXWK VFLHQWLƄF FRRSHUDWLRQ DQG WHFKQLFDO DVVLV-
tance programmes. At a second level, it could promote
HQWHUSULVH GHYHORSPHQW DQG ƄQDQFLQJ RI VSHFLƄF LQQR-
vation activities that are of particular importance to de-
veloping countries. Finally, it could act as a platform for
sharing innovation experiences and promoting learning
DW WKH SROLFPDNLQJ OHYHO ER[

Given the similarity of developing countries’ innovation
experiences and their technological strengths, the Report
UHFRJQL]HV WKHVH FRXQWULHV DV QDWXUDO VWUDWHJLF SDUWQHUV
with each other in efforts to bridge the technological di-
YLGH )XUWKHULQJ WKLV UROH UHTXLUHV FUHDWLQJ WKH ULJKW EDVLV
for accessing science, technology and innovation re-
sources within the developing world. The technology and
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LQJ ƄUPV DQG RUJDQL]DWLRQV DFURVV GHYHORSLQJ FRXQWULHV
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to accelerate their development processes. This needs
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multidirectional, highly interactive process that integrates
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E

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ous circles of rising productivity, technological progress
and structural transformation across the entire develop-
ing world.
******
There are many outstanding issues concerning tech-
nological learning and innovation capacity in the con-
text of developing countries, including those related to
technology transfer, which need to be addressed at the
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solutions to these unresolved policy challenges in the
coming years.
OVERVIEW
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6HFUHWDU*HQHUDO RI WKH 817$'

xxiv TECHNOLOGY AND INNOVATION REPORT 2012
NOTES
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WKDW IROORZHG -DSDQpV LQGXVWULDOL]D-
WLRQ FRPSULVHG +RQJ .RQJ WKH 5HSXEOLF RI .RUHD 7DLZDQ 3URYLQFH RI KLQD DQG 6LQJDSRUH DQG WKH VHFRQGWLHU FRPSULVHG
Indonesia, Malaysia and Thailand.
2. 6HH ER[ LQ FKDSWHU ,,, 6RPH RWKHU VWXGLHV VXFK DV 81(262

TXRWH KLJKHU ƄJXUHV 7KLV UHƅHFWV WKH FRQVLGHU-
DEOH YDULDWLRQ LQ WKH TXDOLW DQG DYDLODELOLW RI GDWD IURP WKH IRXU PDMRU FRQWULEXWRUV IURP WKH 6RXWK t WKH %ROLYDULDQ 5HSXEOLF RI
9HQH]XHOD KLQD ,QGLD DQG WKH 5HSXEOLF RI .RUHD )XUWKHUPRUH WKLV ƄJXUH PD XQGHUHVWLPDWH WRWDO GHYHORSPHQW DVVLVWDQFH
by the South, since several smaller bilateral and multilateral contributions were not included in the study due the paucity of data
DQG GLIIHUHQFHV LQ GHƄQLWLRQV RI ZKDW FRQVWLWXWHV GHYHORSPHQW FRRSHUDWLRQ
See annex table A.II.6 of the Report.
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7KHVH WUHQGV DUH FDSWXUHG LQ ƄJXUH FKDSWHU ,, ZKLFK VKRZV D ODUJH JDS LQ WKH LPSRUWV RI PDFKLQHU DQG WUDQVSRUW
HTXLSPHQW EHWZHHQ RLOH[SRUWLQJ /'V QRQRLO H[SRUWLQJ /'V DQG RWKHU GHYHORSLQJ FRXQWULHV
6. 7DEOH DQG ƄJXUHV DQG FKDSWHU ,,
7DEOH FKDSWHU ,,
8. Table 2.8, chapter II.
7DEOH FKDSWHU ,,
Chapter III.
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FRXQWULHV WKLV SDWWHUQ KDV VKLIWHG VLJQLƄFDQWO WRZDUGV GHYHORSLQJ FRXQWULHV VLQFH ƄJXUH FKDSWHU},

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countries.
These examples are discussed in chapter III of the Report.
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REFERENCES
2('

The Increasing Importance of the South to the South. Perspectives on Global Development 2010. Paris.
81(262

Trends in South-South and Triangular Development Cooperation. %DFNJURXQG VWXG IRU WKH
'HYHORSPHQW RRSHUDWLRQ )RUXP 1HZ RUN 8QLWHG 1DWLRQV

Innovation and Technology Collaboration in the Global South

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