Question

3. To what extent technology transfer can facilitate development in emerging markets?

Answer 1

Answer:

Technology Transfer and Sustainable Development in Emerging Economies:

Introduction::
In recent years, technology transfer from advanced economies has been put forward as one of the fundamental pillars on which to base the search for alternative routes leading to economic growth in emerging economies, including those of Latin America, through sustainable development.

Experience has shown that often the technology transferred and used by transnational companies in emerging economies has caused significant negative externalities in these countries. Nevertheless, on occasion it is these very transnational companies which, given the pressure exerted upon them by the “reputation” factor in a globalized world, aim to be pioneers in the defence of the environment. The focus of this study, however, is not on whether the current path taken by technology transfer is the most appropriate one or the best suited to the interests of emerging economies. Nor do we intended to look in depth at the implications that the globalization of technology could have for these countries. Rather, this paper aims to draw attention to an aspect of technology transfer that can shape its potential benefits in terms of the sustainable development of the economies receiving it. It is necessary to bear in mind that some technologies with a consolidated role in the production systems of developed countries are not necessarily optimal in environmental terms. The phenomenon of technology lock-in can make it difficult to give up a dominant technology, despite its demonstrated inferiority compared with other available alternative technologies. Care therefore needs to be taken when transferring the technology patterns in force in advanced countries mimetically to emerging economies, as emerging countries still have the chance to avoid the mistakes made by developed ones.

The transfer of technology from advanced countries to emerging economies constitutes one of the fundamental ways to pu rsue progress towards convergence between the two economies in terms of standards of living. Nevertheless, the level of R&D expenditure that developed countries can afford gives them a clear advantage in the technological field. It therefore seems logical for emerging countries, which have a more limited investment capacity, to try to exploit technological advances with the least possible expenditure. This paper aims to show how the process of diffusion of "clean technologies" confronts a variety of forces at the macro level that create systematic, technological and institutional barriers to their adoption. There is abundant literature on the role of technology transfer in the development of emerging economies, but this perspective is clearly new. What needs to be borne in mind is the possibility that the transferred dominant technology may be subject to a techno-institutional lock-in at its so urce that does not allow the diffusion of environmentally superior alternative technologies. Care therefore needs to be tak en when transferring the technology patterns in force in advanced countries mimetically to emerging economies, as emerging countries still have the chance to avoid the mistakes made by developed ones.

Technology transfer from the environmental perspective ::

Technology transfer in the environmental field has sparked off one of the most intense debates between developed and less developed countries in recent years. We can find examples of the disagreements that have arisen in the negotiations that have taken place on climate change. Despite the commitment and conviction regarding the need to  transfer environmentally-friendly technology from developed countries to less developed ones, the view of many observers is that the negotiations taking place at the United Nations Climate Change Convention and Agenda 21 have not lived up to expectations (WWF, 1997; CEPAL, 2001). The transfer of clean technologies to emerging economies can provide vital support to the overall goals of reducing greenhouse gases (Ramanathan, 2002; Forsyth, 1997). Indeed, this issue occupies a prominent place in the United Nations Framework Convention on Climate Change (UNFCCC, 1998). However, past experience indicates that, in order to be successful, the transferred technologies must consider a series of factors (Parikh and Kathuria, 1997; Sathaye and Ravindranatah, 1998; UNESCAP, 1997; TERI, 1997), namely:

(i) the type of needs of a developing economy and the degree to which the process of technology transfer is in harmony with the country’s other development goals;

(ii) the requirement for appropriate technologies able to meet these needs;

(iii) the availability of the expertise necessary to ensure the transfer is effective;

(iv) the factors related to the adoption, assimilation and adaptation of the imported technology.

Advantages of Technology Transfer:

Transfer of Technology is increasing day by day and it is also important for commercial enterprises o to gain some advantages from their competitors. Some advantages of Technology Transfer are:

• It leads to competitive advantage for a company from its competitors

• It helps in research and development of a product. Transfer of technology helps organizations to modify it according to needs.

• Transfer of Technology makes Technology new and new innovations lead to the creation of a new market and demand.

• It helps in the commercialization of technology.

Objectives of Technology Transfer:

The main objective of Transfer of Technology is to make Technologies and Product available for use by everyone. It also contributes to the economic development of Organization, Nations and region. By this Commercialization takes Place. Transfer of Technologies makes the technology more improved and cheaper.

Thank u. Answer by - Harsh Kumar