Bridging the technology gap is an issue faced by most countries but in developing countries the issue is doubly critical; not only do they lag further behind relative to other countries but they face more stringent resource constraints. Part one of this report identifies the role played by existing policy in trade, foreign direct investment and intellectual property rights in facilitating International Technology Transfer (ITT). Pertinent analysis of the major implications of the report is given. Part Two The WTO Working Group on Trade and Technology Transfer was established with the aim of encouraging technology transfer to developing countries. This section outlines the Group's Findings for increasing flows of technology. This title provides a thorough overview of the economics of ITT relevant to developing countries and will be invaluable as a reference tool for policy makers, trade officials and trade negotiators. Kamal Saggi is Associate Professor and Director of Graduate Studies, Department of Economics at Southern Methodist University, Dallas, Texas, USA.
Part I. International Technology Transfer: National Policies, International Negotiations and Multilateral Disciplines 1. Introduction 2. Trade, Knowledge Spillovers and Growth 2.1 Knowledge Spillovers via Trade 2.2 Empirical Evidence on Knowledge Spillovers 2.3 Trade in Capital Goods 3. The Role of Foreign Direct Investment 3.1 Multinational Firms and Technology Transfer 3.2 Empirical Evidence on Horizontal Spillovers from Foreign Direct Investment 3.3 Foreign Direct Investment and Economic Growth 4. National Policies 4.1 Trade Policy 4.2 Policy on Foreign Direct Investment 4.3 Intellectual Property Rights Protection 5. Multilateral Rules and Disciplines 5.1 The TRIMS Agreement 5.2 The TRIPS Agreement 6. Policy Lessons Part II. Encouraging Technology Transfer to Developing Countries: The Role of the WTO 1. Introduction 1.1 Asymmetric Information 1.2 Market Power 1.3 Positive Externalities 2. Trade as a Channel of Technology Transfer 2.1 Research on Growth Effects of Trade 2.2 Capital Goods Trade 3. The Role of Foreign Direct Investment 3.1 Multinational Firms and Technology Transfer 3.2 Spillovers from Foreign Direct Investment 4. National Policies 4.1 Policies Towards Foreign Direct Investment 5. Multilateral Rules and Disciplines 5.1 TRIPS and ITT 5.2 ITT and the Mandate of the WTO 5.3 The Role of the WTO in Resolving Information Problems 5.4 Curtailing Market Power 5.5 The TRIMS Agreement References