UNITED NATIONS UNITED NATIONS INDUSTRIAL DEVELOPMENT INDUSTRIAL DEVELOPMENT

ORGANIZATIONORGANIZATION

Web site: http://www.unido.orgWeb site: http://www.unido.org

THE NEW ECONOMY: THE CHALLANGETHE NEW ECONOMY: THE CHALLANGE

The new economy brings opportunities but also challenges to developing countries.

Without investment, technology and innovation, they run the risk of becoming increasingly marginalized from global markets.

CHARACTERISTICS OF NEW ECONOMY

Global

Volatility

DeregulationAnd

Privatization

Disinter-mediation

IndeterminateIndustry

Boundaries

Eco-Sensitivity

Standards Convergence

New Economy

New InformationAnd Communication

Technologies

RapidTechnological

Change

THE TECHNOLOGY DIVIDE: THE TECHNOLOGY DIVIDE: OUTLOOKOUTLOOK

A small number of industrialized countries provide practically all the world’s technology innovation.

Some developing countries are able to adopt these technologies in production and consumption.

The remaining part is technologically disconnected, neither innovating nor adopting foreign technologies.

Barriers to Technology Transfer

Lack of access to information on new technologies and innovations.

Inadequate institutional infrastructure, management and marketing human skills.

Organizational rigidities within the firms themselves.

Limited access to finances.

Regulatory constraints.

Inefficient R&D institutes and disconnection from needs of industry.

Inadequate human resources and mechanisms for their upgrading.

Lack of resources, knowledge and capabilities within policy institutions.

Low efficacy of government support schemes.

UNIDO Response

Objective: To assist the countries in strengthening their capabilities in transfer, absorbing and mastering technology:

At policy level, technology foresight permits to define strategic development directions, guide innovation policy and set up supporting infrastructure.

At institutional level, strengthening National Innovation Systems, technology and innovation centres, high-tech parks, etc. and networking them with UNIDO International Technology Centres, bringing a culture of innovation to business, strengthening R&D institutions to become ‘demand driven’ and respond effectively to industry needs.

At enterprise level, efforts are focused on building capacities in transfer and commercialization of technology and sustainable mechanism to manage technological change.

UNIDO ApproachApplication of modern Information and Communications Technologies (ICT) for improving access to international knowledge, education, training and networking to meet the basic requirements for industrial capability building.

Establishment of International Technology Centres as a unique tool to promote international collaboration, diffuse technological knowledge and innovations and expand UNIDO capacity in technology transfer.

Promotion of environmentally sound technology (EST) to reduce the unfavourable environmental effects of industry.

Strong links to financial sources.

Integration of technology transfer process with other dimensions of the business development, trade liberalization and protection of environment to enhance the contribution to competitiveness and performance of a firm.

Assistance through the whole cycle of technology transfer.

IT

EnterprisesCompetitiveness

GovernmentPolicy

Technology Management and Innovation

Technology Acquisition and Transfer

Technology Foresightand Monitoring

Institutional Framework

TECHNOLOGY PROMOTION PROGRAMME

UNIDO Service Modules

1. Industrial Governance and Statistics

2. Investment and Technology Promotion

3. Quality and Productivity

4. Small Business Development

5. Agro-Industries

6. Industrial Energy and Kyoto Protocol

7. Environmental Management

8. Montreal Protocol

UNIDO Contribution

At the aggregate level of technical cooperation projects (2001):

39 % was dedicated to international protocols, agreements and conventions;

20 % - to investment related technology promotion;

19 % - to environmentally sustainable industrial strategies and technologies, including quality, standardization and metrology;

10 % - to institutional capacity building, including networked industrial statistics and information;

10 % - to agro-industry;

2 % - to industrial policy advice.

TECHNOLOGY AND INVESTMENT PROMOTION

Objective

To help developing countries and economies in transition bridge the technology divide and the investment gap by strengthening their capacities for transfer and acquisition of new technologies, assisting them in technology needs assessment, attracting investment for industrial projects, as well as by establishing sustainable mechanism for technology diffusion and promotion of business alliances

UNIDO: Principal technology transfer and investment activities and initiatives

International Technology Centres (ITCs) Investment and Technology Promotion Offices (ITPOs) Africa-Asia Investment and Technology Promotion

Centre (AAITPC) Subcontracting and Partnership Exchanges (SPXs) UNIDO Exchange Technology Foresight Continuous Improvement and Quality Management SME Clusters and Networks Programme Training, tools and methodologies

New InitiativesNew Initiatives

Technology Foresight Initiative

It aims of providing suitable methodologies to promote sustainable and innovative development, fostering economic, environmental and social benefits at national and regional levels.

The result will be the capability enabling to use technology foresight as a practical tool in designing policies and strategies that exploit emerging and critical technologies for the benefit of countries.

New InitiativesNew Initiatives

"Technology Transfer: Needs Assessment - Promoting Action"

Objective: To enable the countries to audit their current technological capabilities and identify strengths and weaknesses at national, sectoral and enterprise levels.

This tool is designed to: Map out the overall capability level. Profile the capabilities of a country showing strengths and

weaknesses. Assess the effectiveness of current mechanisms for

technology acquisition. Provide valuable information to help select technology

priorities within a coherent strategy for technology upgrading and acquisition.

New InitiativesNew Initiatives

Trade Facilitation Initiative

Objective: To build and develop the capacity of industries in developing countries and economies in transition to facilitate access to the international markets of their products.

Assistance in mobilizing the scientific and technical skills and capacity to meet the international standards in quality, productivity, health, safety and environmental requirements.

New InitiativesNew Initiatives

Environment Related Initiatives

Objective: To support the efforts of the developing countries and economies in transition in efficient use of energy and water resources and management of environmental problems.

Capacity building to meet the requirements of the Climate Change Convention and Kyoto Protocol regime.

Promotion of technology, investment and trade under Clean Development Mechanism (CDM)

Emerging Role of Technology Emerging Role of Technology CentresCentres

Emerging Business Environment

Environment &Quality

Enhanced requirements &int. standards conformity

Market•Globalization•New economy•Competition

•Customer demand

Technology•Technology divide•Rapid advancement•Shortened lifecycle

TC present & future:To bridge technological divide through:

Emerging Technology Strategy

•Monitoring technological trends to support Foresight activities.•Focus on areas with transsectoral & wide-economy impact.•Identification of needs, sourcing & acquisition of technology.•Capacity-building for transfer, application, diffusion, of technological innovation & management of technol. change.•Linking demand driven projects to industrial investments.•Networking

INTERNATIONAL TECHNOLOGY INTERNATIONAL TECHNOLOGY CENTRESCENTRES

mostly operate in the field of new technologies with cross-sectoral and high environmental and social impact – IT, biotechnology (incl. biomedicine), new materials, processing technologies;

monitor technological trends (foresight);

bring the innovation results and the innovation culture to the business environment linking technology with capital, industry and market place;

facilitate transfer and absorption of technology to developing countries (North-South and South-South);

provide training and support to SMEs in technology transfer, commercialization, absorption and diffusion, as well as in managing technological change on sustainable basis;

network with R&D institutes, universities, professional and industrial associations, government institutions, etc.

Main Features:

INTERNATIONAL TECHNOLOGY INTERNATIONAL TECHNOLOGY CENTRESCENTRES (ongoing projects) (ongoing projects)

International Centre for Science and High Technology (ICS, Trieste, Italy)

International Centre for Advancement of Manufacturing Technology (ICAMT, Bangalore, India)

International Centre for Small Hydro Power (ICSHP, Huanzhou, China)

International Centre for Application of Solar Energy (CASE, Perth, Western Australia)

International Materials Assessment and Application Centre (IMAAC, Rio de Janeiro, Brazil)

International Centre of Medicine Biotechnology (ICMB, Moscow, Russia)

International Centre for Materials Evaluation Technology (ICMET, Taejon, Republic of Korea)

UNIDO-Shanghai International IT Technology Promotion Centre (Shanghai, China)

UNIDO-Shenzhen Environment Technology Promotion Centre (Shenzhen, China)

International Centre for Materials Technology Promotion (ICM, Beijing, China) – the project started in June 2002

INTERNATIONAL TECHNOLOGY INTERNATIONAL TECHNOLOGY CENTRESCENTRES (continued) (continued)

International/National Centres Cooperating with UNIDO

International Centre for Scientific and Technical Information (ICSTI, Moscow, Russia, 18 member countries,)

International Technology Centre (InterTec), Vienna, Austria, around 1.000 technologies from Russia)

National Technology Transfer Centre (Minsk, Belarus)

Technology Transfer Centre (Kiev, Ukraine)

National Technology and Innovation Centre in Venezuela

Other R&D institutes, technology centres and universities networked with UNIDO International Technology Centres

INTERNATIONAL TECHNOLOGY INTERNATIONAL TECHNOLOGY CENTRESCENTRES (pipeline projects) (pipeline projects)

UNIDO-Liuyang International Pharmaceutical Industrial Park (LIPIP)

China Climate Finance and Technology Facility (establishment of Venture Capital Fund and Technology Transfer Centre to catalyze investment into energy sector to decrease gas emission)

Creatsoul Venture Technology Transfer Centre (to develop bankable projects for commercialization of high-tech & reduce risk of investment)

UNIDO-Bulgaria Technology Promotion and Innovation Centre (to facilitate the admission to EU)

National technology upgrading programmes in specific sectors of industry (4 on-going and 2 pipeline large projects in India)

National technology and innovation centres to strengthen mechanisms for technology transfer and commercialization through linking the existing technology base, venture/start up capital and market place (Peru, Venezuela)

Technology Needs Assessment Manual and reporting software system

UNIDO Manual on Technology Transfer Negotiation and Training Kit

Training Package on Technology Management Guidelines on Business Alliances Guide on Joint Ventures UNIDO BOT Guidelines UNIDO’s Subcontracting System

TECHNOLOGY RELATED TOOLS TECHNOLOGY RELATED TOOLS AND METHODOLOGIESAND METHODOLOGIES

Technology Transfer & Technology Transfer & CommercializationCommercialization

(case studies)(case studies)Case 1. Technology transfer to secure employment.

Case 4. R&D results are brought to market with capital. In 2001, the National Centre for Technology Transfer (NCTT), established by UNIDO in the Republic of Belarus, facilitated the transfer of 14 technologies through creating new enterprises in the Shandong Province of China. At present, more than 100 research projects are being considered by the Chinese side for initial commercialization. In this case, UNIDO has brought a technology transfer cell with research results to the huge marketplace with start up capital.

The International Centre for Advancement of Manufacturing Technology (ICAMT, Bangalore, India) started to implement a project aiming at technology upgrading the foundry industry in the Agra City of India. The transfer of new technology (at a cost of US$150,000) and its application at 100 foundries will secure 10,000working places for local people, thus investing only US$15 to one job and drastically decreasing the pollutionof environment.

Case 2. Technologies for poor in Africa (South-South).

Within the frame of ICAMT project, UNIDO and India have launched a technology transfer and investment promotion projectfor production of cost-effective building materials for low-costhousing in Africa. These value-added products are manufacturedfrom recycled agro-industrial wastes & local materials resources.The machinery already sold to Africa after the exhibition in Dar-es-Salam (July 2000) has generated employment of 100skilled, 220 semiskilled & 600 unskilled workers. The project is being converted into a large-scale South-South programme between India, Asian, African, L.A.& Caribbean countries.

Case 3. Technologies for the future through partnerships.

The International Center of Medicine Biotechnology(ICMB) in Moscow, Russia, in cooperation with the Beijing Free Economic Zone and City Administration, promoted a modern medical diagnostic centre to be established in Beijing and facilitated the signing of the agreement for initial investment of US$20 million.In addition, ICMB is finalizing a US$7,0 million IndiaRussia partnership programme and facilitating the transferof 4 technologies for new medicines to Venezuela.

INVESTMENT AND TECHNOLOGY PROMOTION

OFFICES’ NETWORKInvestment and

Technology Promotion Offices (ITPO)

BahrainItaly (Bologna and Milan)Belgium (Walloon region)Brazil (Pernambuco)ChinaFranceGreeceJapanPolandSlovakiaRepublic of KoreaRussian Federation

Investment Promotion Units (IPU)

EgyptJordanUgandaTunisia

Morocco

Investment and technology promotion focal office

in the UK - North-West Development Agency (NWDA)

and NIMTECH

INVESTMENT AND TECHNOLOGY PROMOTION OFFICES

(ITPO)

ServicesServices

Information fast lane

Partnership promotion

Investment/technology promotion delegate programme

Business negotiations

Competitive Production Sustainable

Growth

Investors

GovernmentAgencies

InvestmentFunds

FinancialInstitutions

IndustrialAssociations

VentureCapital

R&DInstitutes

Universities

Investment

Technology

ITPOs

TechnologyCentres

IPAs

ITPOs

TechnologyManagement

Innovation

INVESTMENT AND TECHNOLOGY PROMOTION:

DIFFERENCES AND COMPLEMENTARITIES

ITCs ITPOsGovernment Policy, Strategy

Marketing, R&D & Business Strategy

Industrial R&D

Technology

Business Development

Manufacturing

Value-Added

CompetitiveProducts

Awareness &technology trends.

Technology monitoring,sourcing & brokering.Market & partnership

development.

Technology assessment.Business partnership &

strategy.

Technology upgrading,transfer & acquisition.

Investment,technology transfer

Promotion

Investment

Investmenttrends

Links of International Technology Links of International Technology Centers with ITPOs in the Production Centers with ITPOs in the Production

SystemSystem

Investment and Technology Investment and Technology Promotion Network: (Locations)Promotion Network: (Locations)

ITCs

ITPOs

UNIDO Subcontracting & Partnership UNIDO Subcontracting & Partnership Exchanges (SPX)Exchanges (SPX)

PolandPolandSlovakiaSlovakiaCzech RepCzech RepTurkeyTurkey

JordanJordanTunisiaTunisiaMoroccoMoroccoAlgeria (2)Algeria (2)

CubaCubaMexico (6)Mexico (6)Costa RicaCosta RicaBolivia (2)Bolivia (2) Colombia (2)Colombia (2) Ecuador Ecuador Guatemala Guatemala Paraguay Paraguay Peru (2) Peru (2) Uruguay Uruguay Venezuela (2)Venezuela (2)Brazil (2) Brazil (2) Argentina (3Argentina (3))

ChileChile

Madagascar Madagascar MauritiusMauritius

India (7)India (7)

Saudi Saudi ArabiaArabia

Cote D’IvoireCote D’Ivoire

Russian Russian FederationFederation

THANK YOU

For more information about technology For more information about technology

centres, please contact:centres, please contact:

Vladimir Kozharnovich

Programme Manager

Industrial Promotion and Technology Branch

Programme Development and Technical Cooperation Division

UNIDO, P. O. Box 300A-1400 Vienna, AUSTRIA

Phone: (+43-1) 26026-3720/3702Fax: (+43-1) 26026-6870E-mail: V.Kozharnovich@unido.orgWeb-site: http://www.unido.org