RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/WGTTT/M/24 
6 October 2008 
 (08-4741) 
Working Group on Trade and Transfer of Technology 
Twenty-Fourth Session  
 
 
 
NOTE ON THE MEETING OF 14 JULY 2008 
 
Chairperson:  H.E. Mr. Kwabena Baah-Duodu (Ghana)  
  
A.
 ADOPTION OF THE AGENDA .........................................................................................................1  
B. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY ..............1  
C. ANY POSSIBLE RECOMMENDATIONS ON STEPS T HAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING 
COUNTRIES ............................................................................................................................... ...2 
D. OTHER BUSINESS .........................................................................................................................3  
 
 A. 
ADOPTION OF THE AGENDA  
1. The agenda contained in Airgram WT O/AIR/3216 of 30 June 2008 was adopted . 
B. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY  
2. Under the agenda item relating to the analysis of the relationship between trade and transfer 
of technology, Members continued their considerati on of the relationship between trade and transfer 
of technology on the basis of a World Bank study titled " Global Economic Prospects:  Technology 
Diffusion in the Developing World" introduced at the last meeting of the Working Group.  In addition 
to underscoring the crucial role of trade, forei gn direct investment (FDI), direct access through 
internet and migration i.e., the movement of natu ral persons in technological advancement, the study 
found that technology and innovation were two cr itical drivers of economic growth and productivity 
increases in the global market. 
3.  In their discussion, Members shared the vi ew that the study was useful and contained 
information that could help shape their unders tanding of both the successes and challenges that 
countries faced in the area of technology transfer  and its diffusion.  The discussion underscored that 
the private sector and the efficient functioning of mark ets are crucial to technological progress.  In this 
context, one Member highlighted the importanc e of a predictable regulatory framework, an 
appropriate physical infrastru cture and good governance.  On the question of unevenness among 
developing countries with respect to their ability to  absorb and adapt technologies, some Members 
agreed with the findings of the study that more  open economies seemed be tter positioned to realize 
gains from technology transfer and spill-over effects of localized research, development and training.  
One Member, however, noted that the approach taken by the World Bank in the study was less 
focused on identifying ways which could facilitate technology transfer to developing countries. WT/WGTTT/M/24 
Page 2  
 
  C. 
ANY POSSIBLE RECOMMENDATIONS ON  STEPS THAT MIGHT BE TAKEN WITHIN THE MANDATE 
OF THE WTO TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING COUNTRIES  
4. Under the agenda item relating to the consider ation of possible recommendations on steps that 
might be taken within the mandate of the WTO to increase flows of technology to developing 
countries, Members focused their discussion on a new room document entitled "Facilitating Access to 
Information on Appropriate Technology Sourcing – A step to increase flows of technology to 
developing countries", introduced, during the meeting, by India, Pakistan and the Philippines.  The 
new room document built upon earlier submissions ta bled by the proponents on the issue.  In 
emphasising the critical role of technology an d innovation in improving productivity, promoting 
export growth and thus bridging the technological gap and facilitating the realization of development 
aspirations of developing countries, the new ro om document drew Members' attention to the 
importance of promoting access to and dissemination of information in the technology transfer process.   
5. The submission stated that both the acquisition of technology and its diffusion fostered 
productivity and growth.  Traditionally, the in novation and creation process had remained, 
overwhelmingly, the province of the developed c ountries and hence much of the developing world 
had to rely largely on imported technology, mo stly outdated and obsolete, as a source of new 
productive knowledge.  However, in recent years, a considerable amount of follow-up innovation and 
adaptation was occurring in the developing countri es which subsequently had effectively driven 
technological change in the developing world. 
6. The room document invited Members to examin e the possibility of establishing a specialized 
WTO webpage that could serve as a bridge between  various technology related links, as well as  
provide information on reasonably priced availabl e technology options beside serving as a forum for 
matchmaking.  In addition, it alluded to specifi c provisions on technology transfer in the WTO 
agreements, such as Articles 7 and 66.2 of the TRI PS Agreement and highlighted that the fulfilment 
of the objectives set out therein was the subject of regular discussions in the TRIPS Council through 
regular reports on efforts of the developed countries in  this regard.  It suggested that these reports be 
made available on the proposed webpage to prom ote a wider diffusion of information on such 
incentives and activities.   
7. The room document also drew Members' attenti on to the effects of "asymmetric information" 
in the technology transfer process.  Technology tran sfer involved an exchange of right information 
between the technology owner and the recipients.  Highlighting the problems associated with access 
to right information, the document proposed that international organizations, such as the WTO, could 
serve as a conduit for knowledge about successful technology-acquisition programmes that had been 
undertaken by national and sub-national governments in the past.   
8. Going further, the room document flagged the issue of little knowledge and information 
among the developing countries on the structure of international transfer of technology (ITT) 
contracts and other related issues, including, the r easonable royalty rates, conditions that sellers of 
technology had been willing to accept, and the type of clauses in the contracts that could encourage 
local technological development.  Dissemination of information on these aspects, among others, required concerted efforts on the part of the public a nd private sector in the developed countries.  In 
this context, experience sharing on lessons lear nt by countries that underwent rapid technological 
development could play an important role in facilita ting technology transfer to the less developed.   
9. In the discussion that followed, Members shared  the view that the submission was a useful 
contribution to the deliberations in the Working Group.  While some Members believed that the creation of a webpage is a reasonable proposal in  terms of cost-effectiveness and the potential 
benefits, others raised a number of questions rela ting to the possible location of the web-portal, the  WT/WGTTT/M/24 
 Page 3 
 
 
  legal and commercial implications of  such a website to the extent that it could become a forum for 
bids and offers.  In this regard, questions were also flagged with regard to the competence of the 
WTO.  One Member also asked how the proposed webs ite in the WTO would relate to the work being 
undertaken, in this context, by the World Intellect ual Property Organization (WIPO) and what was the 
value-added in locating it in the WTO.  The qu estion as to whether WIPO would be a good location 
for such a web-portal was raised.  In another Me mber's view, while the work in WIPO and WTO 
might be related and complementary, the focus in WIPO remained on intellectual property and 
development, whereas in the WTO,  the focus of work was specifically on technology transfer and 
trade. 
10. In concluding the discussion, the proponents  requested Members to provide their questions in 
writing so as to facilitate the formation of appropriate  responses to them.  It was also proposed that the 
Working Group invite WIPO to one  of its future meetings, to make a presentation on the related 
website presently maintained by them.   
D. OTHER BUSINESS  
11. The Chairman , before closing the meeting, informed Members that the next meeting of the 
Working Group was tentatively scheduled for October 2008.   
 
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