WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/WGTTT/M/36 
9 August 2011 
 (11-3996) 
Working Group on Trade and Transfer of Technology 
Thirty-Sixth Session  
 
 
 
NOTE ON THE MEETING OF 27 JUNE 2011 
 
Chairperson:  H.E. Mrs. Marion V. Williams (Barbados) 
 
 
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  .............................................................................................................................. .... 3 
D.  OTHER BUSINESS  ......................................................................................................................... 3  
 
  A. 
ADOPTION OF THE AGENDA  
1. The agenda contained in Airgram WTO/ AIR/3773 of 15 June 2011 was adopted. 
B. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY  
2. Under the agenda item relating to  the relationship between trade and transfer of technology, 
Members continued the considera tion of the OECD presentation on ''Innovation, Technology Transfer 
and STI Co-operation to address Global Challenges'' that had been made at the thirty-fifth session of 
the Working Group in March 2011.  The presenta tion had, among others, highlighted the vital 
relevance of innovation, research and development (R &D), technology generatio n and its transfer for 
socio-economic policy within the OECD countries, as well as in the broader global context.  It had 
showed that much of the innovation was driven by investments in intangibles such as trademarks and 
patents.  The presentation had also pointed to th e fact that over the years the global map on R&D 
outlay had undergone significant transformation, and that new global players in R&D were fast 
emerging.  In that context, the presentation had al so highlighted China's sh are in global R&D which 
grew from 11 to 30 per cent in 2001-2006.  In othe r OECD countries like Australia, Canada, Iceland, 
Korea, Mexico, New Zealand, Norway and Turkey , it had increased from 10 per cent in 1996-2001 to 
13 per cent in 2001-2006. It had found that research and innovation activities we re being externalized 
more and more, characterizing inte rnational cooperation, in particul ar within OECD countries, as well 
as among those with linked value chains or close proximity.   
3. In providing comments on the OECD presentation,  Members agreed that such sharing of 
work and experience on technology and innovation by other relevant organizations was an integral 
part of the on-going work in the Working Group.  In this context, the OECD presentation was viewed as a positive contribution which shed light on some of the intricate issues pertaining to the technology 
transfer process.  The discussion further highlighted  the fact that R&D, innovation, technology and 
technical know-how were essential for improving productivity, promoting growth and attaining WT/WGTTT/M/36 
Page 2  
 
  development aspirations of countries, especially th e developing countries and the LDCs.  By flagging 
the role of collaborative knowledge markets, Me mbers generally emphasized the importance of 
quality and type of education systems and the n eed for skill and human capital development in host 
countries as necessary pre-requisites for research , innovation, as well as for the absorption and 
adaptation of technology.   
4. Some Members expressed the view that technol ogy transfer should be seen as an important 
tool to narrow the growing technological gap betw een the developed and developing countries for 
integrating the latter into the global trading system.  Alluding to a recent publication by the 
International Centre for Trade and Sustainable Development (ICTSD) titled ''Meaningful Technology 
Transfer to LDCs: A Proposal for a Monito ring Mechanism for TRIPS Article 66.2'',  which among 
others, discussed the implementation of Article  66.2 of the TRIPS Agreement, these Members 
stressed that out of the 384 programmes reviewed only 42 qualified as technology transfer programmes despite the very liberal definition of technology transfer adopted by the ICTSD for the 
purpose of its study.  In their view, the emphasis in  the OECD presentation on the role of South-South 
cooperation could be an important aspect of the technology transfer process;  however, it should not 
be construed in any way to limit or minimize the responsibility of the developed countries in 
transferring appropriate technologies to the developing countries. 
5. With a view to finalizing recommendations that could be made to increase flows of 
technology to developing countries, some Members suggested that while continuing discussion on the 
relationship between trade and transfer of technology  in recognition of the crucial role technology 
transfer plays in development processes and in prom oting the participation of developing countries in 
global trade, it was equally important that the Working Group consider fresh ideas to realize the 
mandate of the Group.  
6. The discussion also highlighted the importance of open and non-discriminatory investment 
regime and regulatory framework, enabling envi ronment, good governance, open trade regime, 
absorptive capacity, local skills and human capital in promoting research and innovation and 
technology transfer.  During the discussion, it was al so mentioned that these factors played a crucial 
role in attracting R&D investment and success fully diffusing new technologies in host countries.
  One 
Member expressed the view that since much of t echnology was in the hands of the private sector, it 
was hard to conceive an effectiv e programme of technology transfer without considering also certain 
host country policies and practices, including the elem ent of investment promotion.  Another Member 
suggested that case studies in the context of the forthcoming Global Review of Aid for Trade could 
also provide insight into some innovative approaches that countries might have employed in 
promoting R&D, innovation and technology transfer.  Another Member felt that the discussion in the Working Group on the impact assess ment of technology and its transfer for developing countries' 
exports could help to develop a be tter sense of the role technology transfer played in development 
processes.  
7. Pakistan shared its experience on indigenous deve lopment of a drip irrigation system by the 
Nuclear Institute of Agriculture and Biology in Faisalabad, and highlighted how this innovation had 
positively impacted the cotton yield, raising it from 96 0 kg per acre to 1680 kg per acre.  With China's 
support the local experts were continuing their work  to add more precision to the technology through 
joint ventures between private firms.  Water s hortage for agricultural land was an acute problem, 
especially in the dry lands of the provinces of Baluchis tan, Sindh and in the South of Punjab Province.  
The Nuclear Institute of Agriculture and Biolog y in Faisalabad which had developed the drip 
irrigation system had successfully tested the system  in a few acres of land, resulting in substantial 
increase in cotton yield.  Acumen Fund (a non-profit global venture fund that used entrepreneurial 
approaches to address problems of global poverty) in  Pakistan had taken this technology to the 
poorest farmers so as to help them grow more with  less water.  The adoption of this technology had 
had the potential of reducing the amount of water th at small landholders needed to cultivate an acre of  WT/WGTTT/M/36 
 Page 3 
 
 
  land by 50 per cent, improving yield by 40 per cent and lowering input costs by 30 per cent.  In 
addition, with this technology year-round farming was also possible, which meant that fewer farmers 
and their families would be forced to migrate.  The Institute of Agriculture and Biology in Faisalabad 
had also taken steps to enter into joint ventures w ith the private sector in China to add more precision 
to this technology.  Pakistan believed that collaborat ion in drip irrigation technology between Pakistan 
and China was a good example of South-South cooperation, and highlighted the importance of 
resource availability for technology dissemination in  developing countries.  Pakistan also made a 
suggestion that the Working Group explore the Aid- or-Trade vehicle so as to allocate resources to 
promote innovation and technology transfer. 
8. Members expressed interest in the development of an "IP Technical Assistance Database" (IP-
TAD) and an "IP Development Matchmaking Datab ase" (IP-DMD) by WIPO in the context of the 
WIPO Development Agenda.  They believed that  those initiatives could go towards serving a 
technology transfer purpose as well, and agreed that WIPO should be invited to share its work in one 
of the future meetings of the Working Group.  Members believed that a presentation by WIPO could 
be useful in shedding light on certain aspects of the outstanding non-paper made by some developing 
countries that the Working Group had been considering for some time.   With respect to a suggestion 
by some Members that the Working Group invite UNEP to share its work on conducive policies and 
the enabling environment required to ensure flow of technology for mitigation and adaptation, one 
Member requested additional clarification from those Members as to what specific objective they had 
in mind in asking UNEP to speak to the Working Group.  
C. ANY POSSIBLE RECOMMENDATIONS ON  STEPS THAT MIGHT BE TAKEN WITHIN THE MANDATE 
OF THE WTO TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING COUNTRIES  
9. Under the agenda item on possible recommendations  that the Working Group could make in 
the future, Members continued their discussion of  an earlier submission entitled ''Facilitating Access 
to Information on Appropriate Technology Sourcing – Steps to Increase Flows of Technology to Developing Countries''.  The proponents were encour aged to revise their submission on the basis of 
comments provided by Members in previous meetings  and table it as a formal document so that the 
Working Group could undertake furt her work on some of the ideas contained therein.  In addition, 
Members also reiterated their view, expressed at earlier meetings, that experience-sharing by countries that had undergone rapid technological deve lopment and sharing of important lessons drawn 
in the development process could constitute an impor tant aspect of the work in the Working Group.  
Experience-sharing would allow developing countri es to make more informed choices without going 
through the process of re-inventing the wheel.  Demand for developing a WTO web-page that 
provided information on technology transfer  was also renewed by some Members. 
D. 
OTHER BUSINESS  
10. No issue was raised under "Other Business".   
11. The meeting was adjourned. 
 
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