WORLD TRADE  
ORGANIZATION  IP/C/W/497/Add.4 
3 December 2007 
 (07-5300) 
Council for Trade-Related Aspects 
of Intellectual Property Original:   English 
 
 
 
REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEMENT 
 
NORWAY 
 
Addendum  
  
 The following communication, dated 11 October 2007, 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.  It was circulated as an advance copy for the TRIPS Council meeting in 
October 2007. 
 
_______________ 
 
 
 
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 c ountry 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 Devel opment 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 capita  of less than US$5,295 in accordance with the 
threshold for the World Bank’s concessional financ ing.  In 2006, approximately US$34 million was 
provided to the said group of developing countries through these programmes.   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 inve stment support, (2) its financing mechanisms for 
import to developing countries, and (3) support to export related activities in developing countries.  
Priority is given to least developed c ountries and Norway's partner countries.  
 
4. The purpose of the Norad facilities for investment  support is to encourage firms to invest in 
and import from developing countries including l east developed countries.  The facilities promote 
cooperation, including cooperation relating to transfer of technology, through the support of 
feasibility studies for establishing joint ventures or fo reign subsidiaries, traini ng in order to strengthen IP/C/W/497/Add.4 
Page 2  
 
  the local staff and management of joint ventures or companies that are owned wholly or partially by 
one or more foreign companies and investments in basic environmental infrastructure.  
5. The purpose of the financing arrangements for export (i.e. import to developing countries) of 
capital goods, technology and services is to promote tr ansfer of technology more directly.  They 
include support for training in connection with export, untied mi xed credits (concessional credits), 
export credit guarantees (through the Norwegian Institu te for Export Guarantees).  Special training 
arrangements in connection with such export to deve loping countries are often necessary to ensure an 
effective transfer of technology and the pr oper 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.a. relating 
to standards, metrology, testing and quality.  Norad has, and is supporting several regional and 
national programs leading to international recogn ition and acceptance of certification systems, both on 
multi-bi basis as well as bilaterally.  Some of these programs also include financing of testing laboratories both for food export and particular industr ial goods.  Assistance is also given to exporters 
in developing countries and to the developmen t of quality and design of products (product 
development) in order to meet in ternational market requirements. 
  
III. NORWEGIAN INVESTMENT FUND FOR DEVELOPING COUNTRIES 
(NORFUND) 
7. The purpose of Norfund is to promote private-sector development in developing countries by 
providing risk capital and expertise.  Norfund support s the realization of viable commercial projects, 
which balance economic, social and environmental co nsiderations, 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 made in the least developed countries. 
 
8. Norfund's three main strategies are direct investments, investments in local funds and 
financial institutions.  These forms of investments provide incentives for the transfer of technology.  
Norfund is also engaged in management of local i nvestment funds in many developing countries, and 
has i.a. established a joint venture with Statkraft, Norway's largest producer of electric power, 
investing in the energy sector in developing countri es.  This joint venture, called Statkraft Norfund 
Power Invest (SN Power), contribut es to the transfer of technology and management capabilities to 
least developed countries through a number of project s, such as the Khimti Hydroelectric Project in 
Nepal and the Theun Hinboun Hydroelectric Pr oject in Lao People's Democratic Republic. 
 9. Norfund's direct investments are made jointly with private companies, mostly in cooperation 
with local partners in developing countries.  Inv estments in local investment funds provide a capital 
base to a local fund, which is managed locally and in turn invests in several local SME companies. 
Investments in and loans to banks and financial in stitutions help create more sustainable local capital 
markets that give small and medium-sized enterprises  better access to financing.  Norfund is actively 
contributing to the success of investment projects initiated by private companies by providing risk 
capital, contacts and expertise on business and market s in developing countries.  Norfund requires the 
investment to be sponsored by a reputable busin ess partner and a business plan must demonstrate the 
presence of a profitable investment opportunity, a market, expertise and the awareness of environmental and social considerations.  Norfund in jects equity or quasi-equity capital, less than the 
amount invested by the private company, and its co mmitments are based on shared risk, not subsidies. 
  IP/C/W/497/Add.4 
 Page 3 
 
 
   For further details concerning the above- mentioned incentive schemes, please contact: 
  Norwegian Agency for Development Co-operation (Norad)  Department for 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  Web site:  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  Web site:  www.norfund.no  
__________