Current challenges are many. Foremost, is the continuing technology gap between countries, evident in the low share of many developing countries in technology exports, the digital divide and shortfalls in learning indicators. The technology gap faced by LDCs and African countries is particularly wide. So wide, in fact, that our JITAP case studies show that not even technology imports are visible in the import structures of African LDC countries. This surprising finding of low technology demands is a reflection of weakness in the enterprise sector and need for policies to encourage development of the private sector.
The need for technology transfer, especially to developing countries, has been recognised in various international fora. UNCTAD's Compendium of existing measures contains a selection of 35 multilateral and 25 regional and interregional instruments that contain provisions related to transfer of technology and capacity building. When bilateral agreements are included, the number of instruments exceeds 80. The provisions on transfer of technology and capacity building in these instruments are underpinned by a variety of shared concerns: effective integration of the developing countries in world trade and investment, protection of intellectual property rights and sustainable development. These provisions have different objectives and scope, and different modes of implementation, including the provision of financing, and are subject to different terms and conditions. In most cases, however, such provisions take the form of "best efforts" commitments, rather than mandatory rules. Thus, their operationalisation remains a challenge.
Other challenges include the need for effective participation of all countries in the setting of standards and technical regulations, and the need for flexibility in the implementation of existing agreements to allow adequate policy space for national measures for technology transfer and diffusion.
For example, one of the agreed recommendations adopted at the recent session of the UNCTAD Investment and Technology Commission, urged Governments to examine the interface between commitments in the TRIPS arrangements and national implementation requirements with a view to also facilitating the application of the TRIPS arrangements to local innovation needs. Similar examination of the relationship between trade and technology transfer could facilitate implementation of other existing arrangements, such as TRIMS and the Agreement on Subsidies and Countervailing Measures.
