Technology Transfer for Climate Change


To whom do we need to transfer climate technologies? Part 1 cont’d – Emerging economies as R&D and production centres – China and India
October 1, 2015, 03:00
Filed under: Emerging Economies, R&D | Tags: , , ,

Like China, India is heavily dependent on fossil fuels for electricity production, as well as heating and transport. Its fuel mix is dominated by oil and coal with significant shares from natural gas and nuclear power. India has also seen a rapid increase in its energy demand, although not on the scale or speed of China. India’s emissions need to peak by 2030, (under a 2 degree scenario), largely through rapid deployment of renewables, nuclear and biofuels. Also crucial will be deployment of best available technologies to enable greater energy use efficiency in industry. As with China, the IEA Energy technology Perspectives note that peaking in 2030 may not be achievable without widespread adoption of CCS in power generation and industry.

India has also taken advantage of opportunities to become a significant player in clean technologies. Indian companies have acquired technology through licensing, through joint ventures, as well as some direct acquisitions. Between 2005 and 2008, Indian exports of renewable technology increased 464% while imports increased by 172%.

India is also the home base of one of the most successful global wind technology manufacturers, Suzlon Energy Ltd. Lewis notes that Suzlon has focused on acquisition of technology by strategically acquiring whole companies, rather than licensing. In part this circumvents the established firms, but relies on significant in-house absorptive capacity.  Suzlon’s export oriented approach also made acquisition of advanced technology and access to markets crucial. This meant that Suzlon could not follow an imitation model, as its products would have been blocked from access to developed country markets where the technologies were protected.  Neither could it rely solely on a licensing model since the terms of licenses from any of the established firms would contain limitations such as geographic restrictions.  This also necessitated creating significant in-house R&D capacity to further develop the technology acquired from smaller second tier firms (Lewis).

India is a major hub for pharmaceutical and agrochemicals production and has in recent years begun to move from generic industries into major originator R&D.  Building on its high export performance, especially to developing countries, Indian firms have been using that capital to cooperate in R&D, acquire firms, and create joint ventures, in order to participate in the lucrative developed country markets for new chemical entities and biological medicines. This role for India as a crucial supplier of affordable medicines has been a large part of the structural debate about how TRIPS might limit access to medicines by forcing Indian firms to provide domestic protection for pharmaceuticals thus limiting their capacity to produce generics for export to meet the need for products in developing countries.

What does this imply?

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To whom do we need to transfer climate technologies? Part 1 – Emerging economies as R&D and production centres – China and India
September 28, 2015, 03:00
Filed under: R&D | Tags: , ,

One of the major issues that is key to thinking about IP, technology and climate change is that there is a geographic structure to the technology need. The majority of developing countries are where the need for existing technologies for energy access and thus low emissions technologies is most evident, and in terms of adaptation where the most severe impacts of technology are held. This means that the flows and access to technology reflects the broader imbalance of technology access in the development framework. However, the emerging economies, especially India and China have an important and special role to play in the generation and dissemination of climate technologies.

The past two decades have seen increasing growth in the role that middle income countries, especially upper middle income countries such as Brazil, India, and China play in international technology flows. Data from 2001 shows that upper middle income countries presented the highest growth arena for high technology exports from the OECD.

Emerging economies are increasingly major players in renewable energy technology investments with Brazil, India and China comprising over 90% of the 72 billion invested in developing countries (just a shade more than that invested in the OECD. See UNEP, Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication, 2011).

The picture of the role of the emerging economies in the new climate technology structure is fundamental to assessing how intellectual property may be a barrier to technology transfer.  If these countries are to engage in large scale replication and distribution of the relevant technologies to other developing countries, then we have to be concerned about anything that places a restriction on their ability to:

  • Function as research and development and production centers for climate technologies
  • Function as export and distribution centers for climate technologies

In the next couple of posts I look at the role of China and India as research and development centers

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The US-China Clean Energy Research Center’s Intellectual Property Management Framework – A model for the UNFCCC Technology Mechanism?
July 8, 2015, 02:30
Filed under: Uncategorized | Tags: , , ,

Joint research and development (R&D) is seen as a major element and panacea for rebuilding trust between countries in the UNFCCC regarding intellectual property and for addressing the difficult issues between emerging economies (read: China) and other developed economies.  The issue is especially fraught between the US and China and yet US-China bilateral cooperation on climate mitigation technology is deep and ongoing, especially through the Clean Energy Research Centre (CERC).

The projects under the CERC are run under national consortia collaborating across borders, so that benefits may be shared across all national actors. Funding for research is purely nationally based (each funds own participants and contributes own funds to joint research), so there is no cross-subsidization unless otherwise agreed. The CERC agreement very clearly outlines the intellectual property framework for managing the research produced under the projects and work plan (See http://www.us-china-cerc.org/Intellectual_Property.html). This is controlled by the CERC protocol and the attached IP Annex. (See http://www.us-china-cerc.org/pdfs/protocol.pdf).

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