Technological progress is crucial for economic development, and TNCs play a major role in generating and disseminating new technologies. In terms of technology generation, TNCs account for about half of the world´s total research and development (R&D) expenditure and more than two-thirds of the world´s business R&D. They transfer technologies in many forms, through both internalized and externalized channels and the bulk of technology dissemination is undertaken within the networks of TNCs.
Today, TNCs have become one of the main sources of new technology to the developing world. In the meantime, some TNCs are relocating elements of their R&D activities to developing economies.
The purpose of this expert meeting is to bring together experts, government policymakers and representatives from TNCs, as well as civil society and academia, to address the relationship between FDI and technology transfer, and in particular its development implications.
While technology transfer and its diffusion in developing host countries affects the latter´s productive capacity, productivity and international competitiveness in several ways, key aspects of this relationship also include issues such as absorptive capacity, technology targeting (by recipient countries; how well does the technology received "fit" with the local national innovation system) and safeguarding countries from potentially negative consequences. All of this applies even more so to least developed countries (LDCs), and the meeting will therefore address the relevant nuances in this respect.
Among other things, the meeting aims to identify and investigate successful cases at different levels, including at the firm, industry (including low-carbon activities) and country levels. It will also explore the role of government policies at the national and international levels, including national innovation policies, in encouraging both domestic and foreign investments in building productive and adaptive capacities.
In this respect, the expert meeting is expected to contribute to the achievement of "practical/actionable" outcomes (as identified in paragraph 207 of the Accra Accord), including specific forward-looking, action-oriented policy recommendations for developing countries, especially LDCs.
