A market transformation approach promotes replicable, ongoing technology transfers rather than one-time transfers. In such an approach, public policy can consider what are the set of institutions which underlie markets and what are appropriate public interventions to shape those institutions. Governments can work with the private sector and establish codes, standards and labels. This provides a framework which can work to the benefit of industry and consumers. This route can help build markets for dispersed, small-scale technologies where technologies are diverse, vendors are many, and consumers face high risks in evaluating and selecting technologies and suppliers.
Standards also allow consumers to be less knowledgeable about the equipment they are purchasing.
The principle of cost-effective reduction should not be uncritically applied in all cases, but rather each technology transfer case, whether government to government, private sector to private sector or community to community should be examined on a case by case basis to see what the social impacts will be and whether these are unavoidable or can be reduced. Governments may wish to develop criteria for ensuring that technology transfer projects do not disempower or negatively influence weaker social groups in a society. Such guidelines could draw from guidelines on integrating gender issues in technology development . The experience in agriculture, forestry, and use of other natural resources has shown that the successful introduction of new technologies or modification of resource use often depends on a recognition of the existing forms of property rights, or on taking steps to create an optimal property rights regime. If property issues are taken into account, those introducing new technologies or proposing modifications in land or resource use can be more assured of the support of the target populations or groups.