Private investment in other developing regions is still limited, although increasing. Official development assistance, although earmarked for low to medium income countries, is also concentrated on a few countries. Funding for science and technology development is important to support industrial development, especially in developing countries. Public funding in the industrial sector, although small in comparison to private funding, remains important but its future role may be changing. Regular evaluation of the goals of public funding is needed for industrial development with respect to the role of cleaner technologies and with respect to the role of private funds.
Barriers limit the uptake of more efficient technologies.
Developing countries and CEITs suffer from all of these factors that inhibit market acceptance of technologies plus a multitude of other market problems. A well developed banking system and existence of appropriate financing mechanisms are essential for the uptake of efficient and cleaner technologies in industry. Traditionally, technology transfer is seen as a private transaction between two enterprises. However, innovation and technology transfer is an interactive and iterative process, involving many different parties. An effective process for technology transfer will require interactivity between various users, producers and adaptors of technology.