What Drives the International Transfer of Climate Change Mitigation Technologies? Empirical Evidence from Patent Data

Abstract

CERNA WORKING PAPER SERIES 2010-03International audienceArticle Abstract : Technology transfer plays a key role in global efforts to reduce greenhouse gas emissions. In this paper, we characterize the factors that promote or hinder the international diffusion of climate-friendly technologies using detailed patent data from 96 countries for the period 1995-2007. The data provide strong evidence that lax Intellectual Property regimes have a strong and negative impact on the international diffusion of patented knowledge. Restrictions on international trade and foreign direct investment also hinder the diffusion of climate-friendly technologies. Surprisingly, local technological capabilities tend to discourage transfers. While broad indicators of technology capabilities are expected to facilitate transfers, this latter result stems from our technology-specific definition of local capabilities, which makes it possible to capture a substitution effect between local and foreign inventions.<br/>Working paper abstract: Using patent data from 66 countries for the period 1990-2003, we characterize the factors which promote or hinder the international diffusion of climate-friendly technologies on a global scale. Regression results show that technology-specific capabilities of the recipient countries are determinant factors. In contrast, the general level of education is less important. We also show that restrictions to international trade--e.g., high tariff rates--and to a lesser extent lax intellectual property regimes negatively influence the international diffusion of patented knowledge. A counter-intuitive result is that barriers to foreign direct investments can promote transfers. We discuss different possible interpretations

The Role of the 2015 Agreement in Mobilising Climate Finance

“…Zhuang, 2011). On the other hand, some developed countries consider that robust policy frameworks to manage IPRs in recipient countries are an enabling factor to technology transfer and innovation (Dechezleprêtre et al 2013). …”

Which Indicators of Absorptive Capacity Enhance Import-Induced South-North Convergence in Labor Intensities?

“…Building on Coe and Helpman (1995) and Coe et al (1997), Crespo-Cuaresma et al (2008) "find that countries with lower levels of product market regulation, employment protection and lower barriers to entrepreneurship benefit to a greater extent from foreign R&D." Our study extends on this work by applying a new global data set and systematically including a large number of additional determinants. Drawing upon patent data, Dechezleprêtre et al (2013) demonstrate that existing technological capability can hinder the absorption of foreign climate-friendly technologies. The intuition is that existing domestic technologies can not only complement, but also substitute foreign technologies.…”

The role of technology transfer for the development of a local wind component industry in Chile

“…It creates new technological capacity through the transfer and the active independent learning, creation and innovation of the recipient (Bell, 1997;Wei, 1995;Ockwell et al, 2008 Given the tacit nature of technology in its broader sense, measuring TT is inherently difficult. Some publications in the field of climate change have attempted to measure TT using as proxies the import of foreign equipment or knowledge in CDM projects (Dechezleprétre et al, 2008;Doranova, 2009;Seres et al, 2009Seres et al, , 2010 or the number of filed foreign patents related to climate change technologies (Hascic and Johnstone, 2009;Dechezleprétre et al, 2010). However, these studies present a narrow perspective of technology as equipment or engineering knowledge and cannot be taken as an indication of the level of skills and knowledge that have been transferred alongside.…”

“…TT are inherently difficult to define and measure, which has placed some limitations to the existing econometric studies of climate change TT (Dechezleprétre et al, 2008;Doranova, 2009;Seres et al, 2009Seres et al, , 2010Hascic and Johnstone, 2009;Dechezleprétre et al, 2010;Frankel and Rose, 2002;Mielnik and Goldemberg, 2002;Cole and Elliott, 2003;Cole, 2006;Ang, 2009;Hubler and Keller, 2010). Case studies can show the actual TT process and provide a focused, localised, empirical and qualitative approach to understanding the variables that govern successful TT.…”