WORLD TRADE  
ORGANIZATION  IP/C/W/452/Add.4 
21 October 2005 
 
 (05-4853) 
Council for Trade-Related Aspects 
of Intellectual Property Rights Original:   English 
 
 
 
REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEMENT 
 
NORWAY 
 
Addendum  
  
 The following communication, dated 17 October 2005, from the Delegation of Norway is 
being circulated pursuant to paragraph 1 of the Decision on Implementation of Article 66.2 of the 
TRIPS Agreement.   
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I. INTRODUCTION 
1. Article 66.2 of the TRIPS Agreement requi res "developed country Members to provide 
incentives to enterprises and ins titutions in their territories for the purpose of promoting and 
encouraging technology transfer to least-developed co untry Members in order to enable them to create 
a sound and viable technological base".  The present note provides an update of the relevant facilities 
provided by the Norwegian Agency for Develo pment Cooperation (NORAD) and the Norwegian 
Investment Fund for Developing Countries (NORFUND).  2. Least-developed countries are eligible for NORAD and NORFUND incentive schemes along 
with other developing countries with a GDP per ca pita of less than US$5,295 in accordance with the 
threshold for the World Bank’s concessional financing.   In 2004, the level of official development aid 
provided through these incentive schemes to (mainly)  least-developed countries was approximately 
US$30 Million.  
II. THE NORWEGIAN AGENCY FOR DEVELOPMENT COOPERATION (NORAD) 
3. NORAD provides incentives for technology tran sfer to developing countries, including least-
developed countries, through:  (1) its facilities for investment support;  (2) its financing mechanisms 
for import to developing countries;  and (3) su pport to export related activities in developing 
countries.  Priority is given to least-devel oped countries and Norway's partner countries. 
 
4. The purpose of the NORAD facilities for investment support is to encourage firms to invest in 
developing countries, including least-developed c ountries.  The facilities promote cooperation, 
including cooperation relating to transfer of tech nology, through the support of feasibility studies for 
establishing joint ventures or foreign subsidiaries, investments in basic environmental infrastructure 
and training in order to strengthen the local mana gement of joint ventures or companies that are 
owned wholly or partially by one or more foreign companies. IP/C/W/452/Add.4 
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 5. The purpose of the financing arrangemen ts for export of capital goods, technology and 
services is to promote transfer of technology more directly.  They include support for training in connection with export, untied mixed credits, export credit guarantees (through the Norwegian 
Institute for Export Guarantees).  Special training arrangements in connection with such export to 
developing countries are often necessary to ensure an  effective transfer of technology and the proper 
operation and maintenance of machines and equipment. 
6. The purpose of supporting export related proj ects is to strengthen the countries' export 
potential and to facilitate trade by assisting in build ing institutional and nationa l capacities i.e. relating 
to standards, metrology, testing and quality.  NORAD has, and is supporting several regional and 
national programmes leading to international rec ognition and acceptance of certification systems, both 
on multi-bilateral basis as well as bilaterally.  Some  of these programmes also include financing of 
testing laboratories both for food export and particul ar industrial goods.  Assistance is also given to 
exporters in developing countries a nd to development of quality and design of products in order to 
meet international marked requirements.  III. NORWEGIAN INVESTMENT FUND FOR DEVELOPING COUNTRIES 
(NORFUND) 
7. The purpose of NORFUND is to promote privat e-sector development in developing countries 
by providing risk capital and expertise.  NORFUND  supports the realization of viable commercial 
projects, which balance economic, social and envir onmental considerations by investing in private 
enterprises and promoting business development in these countries.  The objective is that one-third of 
NORFUND's total investments shall be ma de in the least developed countries. 
 8. NORFUND's two main strategies are direct inv estments and investments in local funds.  Both 
forms of investments provide incen tives for the transfer of technolog y.  NORFUND is also engaged in 
management of local investment funds in many de veloping countries, and has i.e. established a joint 
venture with Statkraft, Norway's largest producer of  electric power, investing in the energy sector in 
developing countries.  This joint venture, called Statkraft NORFUND Power Invest, contributes to the transfer of technology and management capabilities to least-developed countries through a number of 
projects, such as the Khimti Hydroelectric Project in Nepal and the Theun Hinboun Hydroelectric Project in Laos People's Democratic Republic.  
9. NORFUND's direct investments are made jointly with private companies, often in 
cooperation with local partners in developing coun tries.  Investments in local investment funds 
provide a capital base to a local fund, which in turn  invests in several local companies.  NORFUND is 
actively contributing to the success of investment pr ojects initiated by private companies by providing 
risk capital, contacts and expertise on business and markets in developing countries.  NORFUND 
requires the investment to be sponsored by a re putable business partner and a business plan must 
demonstrate the presence of a profitable invest ment opportunity, a market, expertise and the 
awareness of environmental and social considera tions.  NORFUND injects equity or quasi-equity 
capital, less than or equal to the amount invested  by the private company, and its commitments are 
based on shared risk, not subsidies.  IP/C/W/452/Add.4 
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 For further details concerning the above- mentioned incentive schemes, please contact: 
  Norwegian Agency for Development Co-operation (NORAD)  Department for Civil Society and Private Sector Development 
 P.O. Box 8034 Dep., 
 N-0030 Oslo, Norway  Tel:  +47 22 24 20 30  Fax:  +47 22 24 20 31  Email:  postmottak@norad.no 
 Website:  www.norad.no 
 Norwegian Investment Fund for Developing Countries (NORFUND) 
 P.O. Box 1280 Vika,  N-0111 Oslo, Norway 
 Tel:  +47 22 01 93 93  
 Fax:  +47 22 01 93 94  Email:  post@norfund.no  Website:  www.norfund.no   
 
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