GREEN TECHNOLOGY IN DEVELOPING COUNTRIES: CREATING ACCESSIBILITY THROUGH A GLOBAL EXCHANGE FORUM

MICHAEL HASPER1

ABSTRACT
As they pursue e !"!#$ %e&e'!p#e"t( %e&e'!p$") !u"tr$es p!ssess h$)h %e#*"% +!r pr! esses *"% te h"!'!)$es th*t h*&e '$#*te,+r$e"%'y #eth!%s !r *'ter"*t$&es- H!.e&er( these "*t$!"s urre"t'y +* e /*rr$ers t! e"try /e *use !+ tr*%e p!'$ $es *"% $"te''e tu*' pr!perty re)u'*t$!"s th*t re"%er pr! ure#e"t !+ these te h"!'!)$es !st,pr!h$/$t$&e- I" '$)ht !+ the re e"t /re*0%!." $" "e)!t$*t$!"s *t the U"$te% N*t$!"s '$#*te !"+ere" e $" B*'$ t! re#!&e t*r$++s !" )ree" te h"!'!)y( * "e. *ppr!* h t! )ree" te h"!'!)y %$++us$!" sh!u'% /e !"s$%ere% $" !r%er t! /*'*" e the %e#*"% *#!") %e&e'!p$") "*t$!"s +!r +'u$% te h"!'!)y tr*"s+ers .$th the pr!+$t,%r$&e" "ee%s *"% $"te''e tu*' pr!perty !"s$%er*t$!"s !+ te h"!'!)y h!'%ersA p!te"t$*' s!'ut$!" t! !&er !#e the h$)h +$1e% !sts !+ te h"!'!)y %$++us$!" !u'% $"&!'&e the re*t$!" !+ * )'!/*' e1 h*")e +!ru# $" .h$ h tr*"s"*t$!"*' )ree" te h"!'!)y h!'%ers( )ree" &e"ture *p$t*'$sts( *"% %e&e'!p$") !u"try e"trepre"eurs !u'% /r!0er +!r e++$ $e"t *''! *t$!" !+ $"&est#e"t( res!ur es( *"% te h"!'!)$es-

INTRODUCTION
The recent United Nations Cli ate Chan!e Con"erence in Bali# held "ro Dece $er % to 1&# $ro'!ht to!ether e $ers o" 1() nations and n' ero's *'$lic and *ri+ate entities in order to set the sta!e "or a ,))international a!ree ent on cli ate chan!e, as a s'ccessor to the ./oto Protocol0% One o" the a1or to*ics *'rs'ed d'rin! these ne!otiations in+ol+ed concei+in! ethods $/ 2hich de+elo*in! co'ntries co'ld attain
1

30D0 candidate# D'4e Uni+ersit/ School o" La2# ,))-5 B0A0 in Econo ics# B0S0 in Biolo!ical Sciences# Stan"ord Uni+ersit/# ,))60
1

United Nations Cli ate Chan!e Con"erence# Dec0 %71&# The U"$te% N*t$!"s C'$#*te C!"+ere" e $" B*'$# htt*899'n"ccc0int9 eetin!s9co*:1%9ite s9&)&-0*h* ;last +isited No+0 1%# ,))(<0 % Ro$ert Collier# B*'$ Nee%s t! 2"!. , C*" Ch$"* )! Gree"3# S0=0 CHRON0# Dec0 -# ,))># at C1# *&*$'*/'e *t htt*8992220s"!ate0co 9c!i7 $in9article0c!i?"@9c9a9,))>91,9)-9IN,HTP)>B0DTL0
,

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

en+iron entall/7"riendl/ A!reen technolo!/0B& Tal4s ended 2ith de+elo*in! co'ntries *itchin! their stron! de and "or technolo!ies in alternati+e ener!/ and e issions control and need "or "l'id technolo!/ trans"er#6 2hile de+elo*ed co'ntries insisted that technolo!/ trans"er is *roceedin! si!ni"icantl/ $'t *r'dentl/ in li!ht o" the need to *rotect intellect'al *ro*ert/0C B/ the end o" the con"erence# a dra"t technolo!/ trans"er a!ree ent *in*ointed certain !oals "or "'t're *ro!ress on this "ront# incl'din! technolo!/ needs assess ent# 1oint RDD *ro!ra s# a health/ technolo!/ trans"er en+iron ent# and licenses0> Ho2e+er# des*ite the US and E'ro*ean UnionEs stated ho*es o" eli inatin! n' ero's tari""s on cli ate chan!e iti!ation techniF'es to allo2 the "lo2 o" A+al'a$le s4ills and eG*erience 0 0 0 "ro one *art o" the !lo$al econo / to another#B ( this *lan "altered $eca'se de+elo*in! co'ntries +ie2ed the *ro*osal as Adis!'ised *rotectionis B to $oost eG*orts "ro 2ealth/ nations0 - The res'lts o" this cli ate chan!e con"erence de onstrate the need to de+ise a !lo$al inter"ace 'nder 2hich $oth de+elo*in! and de+elo*ed nations and entities can $e reass'red that their interests 2ill $e *rotected0 Section I o" this article anal/Hes the $oo in! ar4et "or !reen technolo!/ +ent're ca*italists in de+elo*ed co'ntries0 Section II descri$es the nascent de and "or !reen technolo!/ in de+elo*in! co'ntries and the eGtent to 2hich $arriers o" entr/ and transaction costs c'rrentl/ *re+ent the e""icient ca*t're o" this de and0 Section III la/s o't a techniF'e in+ol+in! a !lo$al eGchan!e "or' odeled a"ter s'ccess"'l entre*rene'rial technolo!/ trans"er sche es in order to $rin! l'cid +al'ation and assess ent o" s*eci"ic o**ort'nities and a co on *oint o" eGchan!e 2here s'**l/ can $e ost e""icientl/ atched 2ith de and0
,

S'san Sch2a$ D Peter Mandelson# 4!r0$") T!.*r%s *" Ope" G'!/*' M*r0et $" Gree" Te h"!'!)y# Dec0 ># ,))># htt*899ec0e'ro*a0e'9co ission:$arroso9 andelson9s*eeches:articles9art* )&C :en0ht ;last +isited Oct0 ,(# ,))(<0 6 3ose*h Cole an# P!!r N*t$!"s De#*"% Gree" Te h"!'!)y# USATODAI0COM# Dec0 1&# ,))># htt*8992220'satoda/0co 9ne2s92orld9,))>71,7 1&7 ,(>%1>-%-6:G0ht ;last +isited Oct0 ,(# ,))(<0 C I%> JLOBE7Net# C'e*"Te h I"&est$"): The Gree" G!'% Rush# JREENBIK0COM# 3an0 C# ,))(# htt*8992220!reen$iH0co 9ne2s9re+ie2s:third0c" ?Ne2sID@%C&() ;last +isited Se*t0 1%# ,))(<0 ( See Sch2a$ D Mandelson# supr* note &0 P'*" t! S r*p T*r$++s !" Gree" Te h"!'!)y F*'ters $" B*'$ # CBC NELS# Dec0 -# ,))># htt*8992220c$c0ca92orld9stor/9,))>91,9)-9$ali7tari""s0ht l ;last +isited Oct0 ,(# ,))(<0
&

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

I0 THE MAR.ET =OR JREEN TECHNOLOJI A- Gree" te h"!'!)y $s /e !#$") *" *ttr* t$&e !#p!"e"t !+ !#p*"$es6 /us$"ess p'*"s
The creation o" 2or4in! technolo!/ that is a**lied either to con+entional *rocesses to a4e the ore en+iron entall/7"riendl/ or to s'$stit'te "or eGistin! *rocesses is alread/ $ein! dri+en "or2ard in de+elo*ed co'ntries thro'!h a +ariet/ o" echanis s0 Lell7esta$lished eGistin! co *anies are decidin! to ado*t !reen technolo!/ *ractices to s'**le ent or co *le ent their *rod'ction techniF'es "or $oth !oods and ser+ices01) =or eGa *le# IBM recentl/ declared in Pro1ect Bi! Jreen11 that the/ 2o'ld s*end M1 $illion ann'all/ to research 2a/s to a4e co *'tin! ore en+iron entall/ "riendl/# 2hich it *redicts 2o'ld /ield IT enter*rises an a+era!e sa+in!s o" &,N0 1, Additionall/# IBM has "o'nd that t2o7thirds o" cons' ers are 2illin! to *a/ ore "or !reen ener!/ o*tions i" it is sho2n to red'ce !reenho'se !as e issions01%
%

The con+entional 2isdo that ado*tin! !reen technolo!/ necessaril/ co es at an additional cost to "ir s has $een challen!ed $oth e *iricall/ and theoreticall/ o+er the *ast decade0 Michael Porter "irst h/*othesiHed in 1--6 that en+iron entall/7conscio's *ractices can sti 'late inno+ation that co *ensates "or the costs o" i *le entation01& These echanis s a/ incl'de channelin! $etter access to ar4ets# *rod'ct di""erentiation that increases *ro"its# the sale o" *oll'tion7control technolo!ies# and cost red'ctions in re!'lations# aterials# ener!/# ser+ices# ca*ital# and la$or016 In a recent cost7$ene"it anal/sis o" the *rod'ction
&

See( e-)-# Bosch# E1p*"%$") .$th Gree" Te h"!'!)y# htt*8992220$osch0co 9content9lan!'a!e,9ht l9&&&60ht ;last +isited Se*t0 1%# ,))(<0 11 Pa'l McDo'!all# IBM T! Spe"% 78 B$''$!" Per Ye*r O" Gree" Te h"!'!)$es( IN=ORMATIONLEE.0COM# Ma/ 11# ,))># htt*8992220in"or ation2ee40co 9ne2s9sho2Article01ht l?articleID@1--6)1), & ;last +isited Oct0 ,(# ,))(<0 IBMEs Pro1ect Bi! Jreen in+ol+es a "i+e7ste* a**roach "or co *anies loo4in! to c't *o2er 'sa!e that 1< 'tiliHes so"t2are to odel *o2er 'sa!e5 ,< eco7"riendl/ $'ildin! constr'ction5 %< +irt'aliHin! in"rastr'ct'res5 &< *o2er ana!e ent so"t2are5 6< liF'id coolin! s/ste s0 I%1, I%1% Press Release# IBM# IBM S'r+e/8 Cons' ers Lill Pa/ More "or En+iron entall/ =riendl/ Ener!/ O*tions ;Dec0 1%# ,))><# htt*8992220i$ 0co 9*ress9's9en9*ressrelease9,,-&>02ss ;last +isited Oct0 ,(# ,))(<0 1& See Michael E0 Porter D Class +an der Linde# T!.*r%s * Ne. C!" ept$!" !+ E"&$r!"#e"t,C!#pet$t$&e"ess Re'*t$!"sh$p# - 30 ECON0 PERSP0 -># 1)6 ;1--6<0 16 Ste"an A $ec D Pa'l Lanoie# 4he" *"% 4hy D!es $t P*y t! Be Gree"3 , ;Jreno$le A**lied Econ0 La$orator/# Lor4in! Pa*er No0 ,))>)&# ,))><0
1)

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

co *onents o" S2iss co *anies i *le entin! en+iron ental ana!e ent s/ste s# CCN o" those s'r+e/ed identi"ied cost red'ction *otential as a oti+atin! "actor in ado*tin! s'ch s/ste s# 2hile nearl/ ()N o" the sa e co *anies identi"ied *rod'ct di""erentiation01C It is hardl/ s'r*risin! that an/ co *anies see *rod'ct di""erentiation as a $ene"it o" !oin! !reen0 A a1or dri+in! "orce $ehind the a$ilit/ to !arner a *ro"it is the o**ort'nit/ to ca*t're an 'nta**ed ar4et# sti 'late *rod'cti+e acti+it/# and sec're that ar4et share thro'!h intellect'al *ro*ert/ ri!hts on inno+ation0 1> EGa *les o" s'ch *rod'ct di""erentiation incl'de A$io "oodB ind'stries# !reen ener!/# and h/$rid cars0 The s'ccess in the ar4et*lace o" s'ch *'rs'its has $een s'!!ested to $e contin!ent '*on credi$le in"or ation on the en+iron entalis o" the *rod'ct# 2illin!ness to *a/# and $arrier to i itation "ro co *etitors01( On the "li* side# *rocess di""erentiation in *ros*ecti+e antici*ation o" ti!hter en+iron ental re!'lations can a""ord "irst7 o+er ad+anta!es in $'d!etin! lia$ilit/ costs# "ines# and liti!ation01- E+en on the c'rrent $alance sheet# o+in! to2ard *rocesses that lead to less *oll'tion is o"ten tied in 2ith ore e""icient 'tiliHation o" ra2 aterial# th's *ro otin! i *ro+ed *rod'cti+it/0,) As a concrete eGa *le# ore strin!ent s'l"'r dioGide e issions standards in the United States as enacted "ro a ca*7and7trade *ro!ra in 1--) red'ced co *liance costs 2hile enhancin! inno+ation and *ro otin! co *etition in the ra2 aterials in*'t ar4et0 ,1 The 4e/ to the s'ccess o" this *ro!ra in+ol+ed co *anies $an4in! allo2ances d'rin! the initial /ears 2hen a$ate ent costs 2ere lo2 and then 'sin! these credits to s ooth o't costs o+er ti e0,,
6

Ca*ital costs can also $e red'ced thro'!h the i *le entation o" !reen technolo!/0 Ban4s are increasin!l/ allo2in! "or easier $orro2in! "ro co *anies that *'rs'e *ro1ects dee ed to re"lect so'nd en+iron ental *ractices,% $eca'se s'ch *ractices ser+e as a *roG/ to de onstrate F'alit/ o"
C

See 3ost Ha sch idt D Tho as D/llic4# ISO 89::8: Pr!+$t*/'e3 Yes; But Is $t E !,E++e t$&e3 %& JREENER MJMT0 INTEL &%# &> ;,))1<0 1> See San1a/a Lall D Man'el Al$alade1o# I"%$ *t!rs !+ the Re'*t$&e I#p!rt*" e !+ IPRs $" De&e'!p$") C!u"tr$es &76 ;OEH Lor4in! Pa*er Series# OEHLPS(6# ,)),<0 1( See A $ec D Lanoie# supr* note 16# at >7(0 1See A $ec D Lanoie# supr* note 16# at (0 ,) See Porter D +an der Linde# supr* note 1&# at 1)60 ,1 Dallas B'rtra2# I""!&*t$!" U"%er the Tr*%*/'e Su'+ur D$!1$%e E#$ss$!" Per#$ts Pr!)r*# $" the U-S- E'e tr$ $ty Se t!r %7& ;Reso'rces "or the ='t're# Disc'ssion Pa*er ))7%(# ,)))<# *&*$'*/'e *t htt*8992220r""0or!9doc' ents9R==7 DP7))7%(0*d"0 ,, I%,% See The EF'ator Princi*les# The E<u*t!r Pr$" $p'es: A F$"*" $*' I"%ustry Be" h#*r0 +!r Deter#$"$")( Assess$")( *"% M*"*)$") S! $*' 5 E"&$r!"#e"t*'
1C

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

ana!e ent and ar4et o**ort'nities0 ,& A lar!e a1orit/ o" e *irical st'dies o+er the *ast decade in+ol+in! *ort"olio anal/sis sho2 a *ositi+e correlation $et2een en+iron ental *er"or ance and $etter "inancial *er"or ance0,6

B- Ve"ture *p$t*'$sts *re *'re*%y $"&est$") he*&$'y $" )ree" te h"!'!)y pr!spe ts $" %e&e'!pe% !u"tr$es
Jreen technolo!/ o**ort'nities are alread/ attracti+e eno'!h in de+elo*ed co'ntries "or +ent're ca*italists ;PCs< 2ho are $an4in! on the *ro"ita$ilit/ and !ro2th o" this sector to in+est a ra*idl/ !ro2in! a o'nt o" reso'rces in these endea+ors0 In ,))C# PCs in+ested M,0C $illion in clean technolo!ies# an ()N increase o+er the *re+io's /ear0 ,C The a1orit/ o" these in+est ents are c'rrentl/ de+oted to alternati+e ener!/ sol'tions# incl'din! 2ind# solar# and lo27car$on technolo!ies0 ,> PCs are still t/*icall/ in+estin! in United States co *anies# or co *anies 2ith U0S0 headF'arters0,( B/ ,))-# !reen technolo!/ is eG*ected to acco'nt "or ( to 1)N o" all +ent're ca*ital in+est ents0,>

PCs are $an4in! on !reen technolo!/ in lar!e *art $eca'se the/ see ne2 re!'lations in the *i*eline *lacin! restrictions on con+entional technolo!ies and *ro otin! incenti+es to de and !reener alternati+e *rocesses0%) Not onl/ that# $'t !oin! !reen in and o" itsel" res'lts in *ro"ita$le o'tco es0 Accordin! to D'Pont# M6 $illion o" that co *an/Es
(

R$s0 $" Pr!=e t F$"*" $") ;,))C<( htt*8992220eF'ator7 *rinci*les0co 9doc' ents9EF'ator:Princi*les0*d" ;last +isited Se*t0 1%# ,))(<0 ,& See Bertrand Montel D J'/ De$aille'l# Les >'e&*)es p!r $" +* e ? '6e"&$r!""e#e"t : re !"stru t$!" %u syst@#e %e )est$!" et "!r#e QP$) F*r#$") *"% the E"&$r!"#e"t*' Ch*''e")e: The Re/u$'%$") !+ the M*"*)e#e"t Syste# *"% the ISO 89::: St*"%*r%R# Proceedin!s o" the Con"erence8 Les s/stS es de *rod'ction a!ricole8 Per"or ances# S+ol'tions# *ers*ecti+es 1& ;,))&<# *&*$'*/'e *t htt*8992220s"er0asso0"r9do2nload9>19D:MONTEL:de$aille'l0*d"0 ,6 See A $ec D Lanoie# supr* note 16# at ,(0 ,C .ate Lillia son# C'e*"( Gree" Te h"!'!)y M!&$") $"t! the M*$"stre*#( ETAMINER# =e$0 ,C# ,))># htt*8992220eGa iner0co 9a7 6(6-%1UClean::!reen:tech:ind'str/:!ro2in!0ht l ;last +isited Oct0 ,(# ,))(<0 ,> See JUINNESS AT.INSON ALTERNATIPE ENERJI =UND# =UND =ACT SHEET ;,))(<# htt*8992220!a"'nds0co 9alt0*d" ;last +isited Oct0 ,(# ,))(<0 ,( Matt Marshall# VCs I"&est M!re $" Gree" Te h"!'!)y( But Is It E"!u)h3# PENTUREBEAT# Se*0 ,C# ,))># htt*899+ent're$eat0co 9,))>9)-9,C9+cs7in+est7 ore7in7!reen7technolo!/7$'t7is7it7eno'!h9 ;last +isited Oct0 ,(# ,))(<0 ,NICHOLAS PAR.ER D ANASTASIA OEROUR.E# CLEANTECH PENTURE CAPITAL REPORT 7 ,))C ;,))C< ;on "ile 2ith a'thor<0 %) Koe Pan Sch/ndel# C'e*" !r Gree" Te h"!'!)y I"&est$")# INPESTOPEDIA# htt*8992220in+esto*edia0co 9articles9)>9clean:technolo!/0as* ;last +isited Se*t0 1%# ,))(<0

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

M,- $illion in re+en'e co es "ro s'staina$le *rod'cts s'ch as the corn7 $ased Bio7PDO#%1 2hich can $e 'sed in *lace o" *etrole' 7$ased s'$stances in a 2ide +ariet/ o" an'"act'red *rod'cts0 Si ilarl/# JE eG*ects a do'$lin! o" re+en'es# "ro M1) to M,) $illion# in its AEco a!inationB line o" *rod'cts in a "i+e7/ear *eriod#%, constit'tin! 2hat JE Chie" EGec'ti+e 3e"" I elt called Aa sales initiati+e 'nli4e an/ other IV+e seen in ,6 /ears at JE0B%% Altho'!h the con+entional A!iantsB see to $e ta4in! on a sta4e in the !reen o+e ent# PCs are de+otin! 4e/ attention to s all entre*rene'rial start'*s0 Nth Po2er# an ener!/7ind'str/ "oc'sed PC "ir $ased in San =rancisco# is A+er/ "oc'sed on s all co *anies that 2ill o+e "aster than lar!e co *anies 2ith these sol'tions0B%& Lell7esta$lished PC "ir .leiner Per4ins Ca'"ield D B/ers# 2hich c'rrentl/ ana!es a MC)) illion "'nd# in+ests a third o" it in car$on7red'cin! technolo!ies and recentl/ added Al Jore to its ana!e ent roster0%6
-

Lith the nearl/ eG*onential !ro2th in PC in+est ent in this sector# it is i *ortant to note that !reen technolo!/ !ro2th# li4e all *ros*ecti+e in+est ent# does not al2a/s eet eG*ectations0 .leiner Per4ins# "or eGa *le# enco'ntered so e t'r$'lence in ,))> as so e o" its *ort"olio co *anies "ailed to eet eG*ectations0%C In ost instances# *rod'ction dela/s acco'nted "or the "ail're to eet eG*ectations0%> Th's# e+en tho'!h the *ort"olio too4 a hit# it 2as not $eca'se de and "or the *rod'cts $ein! *'rs'ed $/ the *ort"olio co *anies had decreased# $'t instead see ed
1)

Nicholas Parcha+er# Che#$ *' Re* t$!"# =ORTUNE# A*r0 ,# ,))># at 6,# *&*$'*/'e *t htt*899 one/0cnn0co 9 a!aHines9"ort'ne9"ort'ne:archi+e9,))>9)&9),9(&)%&,&9i ndeG0ht 0 %, .e+in Poi!t# Bus$"ess Sees Gree" $" G!$") Gree"( CNN0COM INTEL# Dec0 ,1# ,))C# htt*899edition0cnn0co 9,))C9BUSINESS91,91&9en+iron ent9indeG0ht l ;last +isited No+0 &# ,))(<0 %% Brad .enned/0 Gree" E<u*'s Gree" At GE# Ind'str/Lee4# Ma/ %1# ,))># htt*8992220ind'str/2ee40co 9ReadArticle0as*G?ArticleID@1&,(& ;last +isited No+0 1&# ,))(<0 %& R/an 30 McCarth/# Ve"ture C*p$t*'$sts F'! 0 t! Gree" Te h"!'!)y# INC0COM# Mar0 ,(# ,))C# htt*8992220inc0co 9ne2s9articles9,))C)%9!reen0ht l ;last
%1

+isited No+0 &# ,))(<0 %6 Marc J'nther D Ada Lashins4/# A' G!re6s Ne1t A t: P'*"et,s*&$") VC# =ORTUNE0COM# =e$0 1,# ,))(# htt*899 one/0cnn0co 9,))>9119119ne2s9ne2s a4ers9!ore:4leiner0"ort'ne9indeG0 ht ;last +isited No+0 &# ,))(<0 %C Michael .anellos# A::B * B$t O++ +!r 2'e$"er Per0$"s6 Gree",Te h P!rt+!'$!# CNET NELS# Dec0 ,1# ,))># htt*8992220ne2s0co 9(%)17111,(:%7-(%>%)17 6&0ht l ;last +isited No+0 &# ,))(<0 %> I%-

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

associated 2ith the inherent 'ncertaint/ associated 2ith inno+ation and the conce*tion and eGec'tion o" ne2 technolo!ies0

II0 JREEN TECHNOLOJI IN DEPELOPINJ COUNTRIES8 BARRIERS TO

ENTRI PREPENT TECHNOLOJI DI==USION

An idealistic notion concei+ed $/ an/ *'$lic *olic/ theorists o+er the *ast decade is that de+elo*in! co'ntries sho'ld Alea*"ro!B o+er con+entional dirt/ technolo!ies# instead i *le entin! !reen technolo!ies "ro the start to a+oid !ettin! tra**ed in hi!h7car$on *aradi! s0 %( Con+entional a**roaches to this Alea*"ro!!in!B ha+e centered aro'nd the notion o" "i+e *rereF'isite conditions8 a shi"t to AcleanB *rod'ction# i ediate action# technolo!/ trans"er "ro de+elo*ed co'ntries# the stren!thenin! o" incenti+e re!i es# and international assistance0 %- Shi"tin! to clean *rod'ction 2as tho'!ht to 'tiliHe *rocess e""icienc/ to i ediatel/ red'ce the econo ic $'rden o" health and ecos/ste da a!e &) and enhance co *etiti+eness in international ar4ets $/ lo2erin! costs o" achie+in! en+iron ental tar!ets0&1 Installin! clean technolo!ies at the earl/ sta!e o" ind'strialiHation 2o'ld *recl'de the Aloc47inB e""ect "or con+entional ethods0&, Jarnered technolo!/ alread/ in eGistence "ro North7So'th trans"ers# *ri aril/ a+aila$le thro'!h the *artici*ation o" transnational cor*orations and their s'$sidiaries in de+elo*in! co'ntries# 2o'ld s'**lant the ina$ilit/ o" do estic "ir s that are "inanciall/7stra**ed and allo2 "or lo2er7cost !reen technolo!/ introd'ction0&% These technolo!/ trans"ers are con+entionall/ +ie2ed as reF'irin! an econo ic *olic/ "or' s'**ortin! co *etiti+e ar4ets&& and stron! !o+ern ental "ra e2or4s "or en+iron ental *rotection0&6 Additionall/# international assistance is +ie2ed
11

Richard Per4ins# E"&$r!"#e"t*' Le*p+r!))$") $" De&e'!p$") C!u"tr$es: A Cr$t$ *' Assess#e"t *"% Re !"stru t$!"# ,> NAT0 RESOURCES =0 1>># 1>> ;,))%<0 %I%&) LORLD BAN.# JREENINJ INDUSTRI8 NEL ROLES =OR COMMUNITIES# MAR.ETS# AND JOPERNMENTS -- ;,)))<0 &1 Per4ins# supr* note %(# at 1>(0 &, See Gre)!ry C0 Unr'h# U"%erst*"%$") C*r/!" L! 0,I"# ,( ENERJI POLEI (1># (,) ;,)))<0 The Aloc47inB e""ect in a technolo!ical *aradi! occ'rs 2hen *oll'tin! eas'res eG*erience the $ene"its o" cost sa+in!s# desi!n i *ro+e ents# learnin! e""ects# and *ositi+e eGternalities in s/ste atic relations in the *rod'ction str'ct're# *recl'din! s'$seF'ent ado*tion o" en+iron entall/7 "riendl/ technolo!ies0 I%&% A / Shan4le# Sust*$"*/'e I"%ustr$*'$C*t$!"( C 30 ENPET D DEP0 &C&# &C&7 &C6 ;1-->< ;re+ie2in! DAPID LALLACE# SUSTAINABLE INDUSTRIALIKATION ;Earthscan ed0# 1--C<<0 && See LORLD BAN.# supr* note &)# 6(76-0 &6 Per4ins# supr* note %(# at 1>-0
%(

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

as a necessar/ co *onent to $rid!e the !a* in in"or ation# cost# and co *etin! technolo!ies0&C The *ro$le 2ith these con+entional a**roaches is that an/ o" the incorrectl/ ass' e the ori!in and *ossi$ilities o" s'ch technolo!/ entrance and inco *letel/ address the reF'ire ents o" technolo!ical chan!eo+er0&> Basin! technolo!/ di""'sion solel/ on transnational "ir s or North7So'th trans"ers to esta$lished co *anies isses the i *ortant role o" indi!eno's "ir s that ar!'a$l/ are $etter a2are o" local needs and res*onses# and th's are $etter a$le to i *le ent technolo!ies conco itant 2ith the de and and econo ic *otential o" their s'rro'ndin!s0 &( Additionall/# lea*"ro!!in! reF'ires not 1'st stron! incenti+es# $'t ca*a$ilities o" "ir s to res*ond to incenti+es&- and a hi!h7eno'!h le+el o" s4ill and eG*ertise to ana!e the *rocess o" technolo!ical chan!e0 6) The latter in+ol+es h' an ca*ital that !enerall/ reF'ires in*'ts "ro co *le entar/ instit'tions061 E+en "or nations attractin! "orei!n direct in+estin! and transnational co *anies# lar!e do'$ts eGist as to 2hether *ositi+e s*illo+er e""ects to local learnin! 2ill occ'r0 6, These e""ects are i *ortant considerin! that de+elo*in! co'ntries 2ill ha+e s all ar4ets "or lo2 +al'e ite s that 2o'ld still $e ser+iced ainl/ $/ local "ir s and not transnationals06% Loc47in o" con+entional technolo!ies re ains a si!ni"icant ris4 2hen so 'ch technolo!/ *roc're ent is de*endent '*on the ado*tion o" the iG o" technolo!ies *'t into action $/ the technolo!ical re!i es "ro the de+elo*ed co'ntries 2ho are $esto2in! it# 2hich an/ ti es incl'de con+entional technolo!ies06&
1,

In an en+iron ent that e *iricall/ has *ro+en less in+itin! than earl/ theorists a/ ha+e s'!!ested# +ent're ca*italists in de+elo*in! co'ntries ha+e "lo'rished ainl/ in arenas 2here technolo!/ and ind'strial
1%

Ernest Lorrell et al0# Te h"!'!)y Tr*"s+er !+ E"er)y E++$ $e"t Te h"!'!)$es $" I"%ustry: A Re&$e. !+ Tre"%s *"% P!'$ y Issues # ,- ENERJI POLEI ,-# &)7&1 ;,))1<0 &> Per4ins# supr* note %(# at 1>-0 &( See 3a es 30 Doole/ D Pa'l 30 R'nci# De&e'!p$") N*t$!"s( E"er)y R5D( *"% the Pr!&$s$!" !+ * P'*"et*ry Pu/'$ G!!%: A L!"),Ter# Str*te)y +!r A%%ress$") C'$#*te Ch*")e# - 30 ENP0 D DEP0 ,16# ,%& ;,)))<0 &See San1a/a Lall# Te h"!'!)$ *' C*p*/$'$t$es *"% I"%ustr$*'$C*t$!"# ,) LORLD DEP0 1C6# 1CC ;1--,<0 6) See $%61 I%- at 1(,71(%0 6, See 3es's =eli*e# C!"&er)e" e( C*t h,up *"% Gr!.th Sust*$"*/$'$ty $" As$*: S!#e P$t+*''s# ,( OT=ORD DEP0 STUD0 61# C6 ;,)))<0 6% Per4ins# supr* note %(# at 1(,0 6& I%&C

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

*olic/ *ro ote de+elo* ent o" ne2 *rod'cts066 Lhile ado*tin! these ne2 technolo!ies reF'ires the a$ro!ation o" hi!h 'ncertaint/ and in"or ation costs associated 2ith credit constraints and 4no2led!e !a*s# 6C +ent're ca*ital can *ro+ide in"or ation to assess in+est ent *lans# $rid!e in"or ation as/ etries# and lo2er the transaction costs o" screenin! and contractin!06> PC "ir s ha+e onl/ ade their *resence "elt in the de+elo*in! 2orld o+er the *ast decade06( The ain $arrier to entr/ "or PCs in de+elo*in! co'ntries is the lac4 o" an or!aniHed ar4et "or *'$lic eF'it/06-

III0 LOLERINJ THE COSTS O= JREEN TECHNOLOJI ENTRI A- Re h*r* ter$C$") /*rr$ers t! e"try !+ )ree" te h"!'!)y *''!.s #!re e++$ $e"t s!'ut$!"s t! /e p$"p!$"te%
In li!ht o" the 'ltit'de o" "actors alread/ entioned in this article that hinder the entrance o" !reen technolo!/Wintellect'al *ro*ert/ ri!hts concerns# "inancin! iss'es# technical 4no27ho2 o" the *'tati+e reci*ients# co *le entar/ in*'ts and instit'tions to c'lti+ate technolo!ies# s all *rod'cers caterin! to local ar4ets# and trade $arriersWsol'tions to the !reen technolo!/ dile a co'ld theoreticall/ tar!et one or an/ o" these "actors0 Ho2e+er# this *a*er 2ill "oc's on the role o" +ent're ca*italists and de+ise a strate!/ 2here'*on *ros*ecti+e ass'rance o" ar4et s'ccess is increased +ia re o+in! in"or ation as/ etries and "osterin! in"or ation and eF'it/ eGchan!e# di""'sion o" technolo!/ '*on 2hich the *ro*rietar/ +al'e has alread/ $een red'ced# and 2here trade $arriers are not a ended $'t di inished in i *ortance0
1&

So e scholars contend that one o" the ain isconce*tions a$o't !reen technolo!/ is the eGtent to 2hich intellect'al *ro*ert/ a4es its di""'sion cost7*rohi$iti+e d'rin! ris4 +al'ation0C) Unli4e the *har ace'tical sector# 2here dr'! de+elo*ers are *'rs'in! technolo!ies 2itho't an/ s'$stit'tes# th's con"errin! s'$stantial *ricin! *o2er# co *etiti+eness
16

See S'nil Mani D Anthon/ BartHo4as# I"st$tut$!"*' Supp!rt +!r I"&est#e"t $" Ne. Te h"!'!)$es: The R!'e !+ Ve"ture C*p$t*' I"st$tut$!"s $" De&e'!p$") C!u"tr$es &> ;UNU9INTECH Disc'ssion Pa*er Series# No0 ,)),7&# ,)),<0 6C I%- at -0 6> See $%- at 1)0 6( I%- at 1(0 6See Leslie A0 3en! D Phili**e C0 Lells# The Deter#$"*"ts !+ Ve"ture C*p$t*' Fu"%$"): E&$%e" e A r!ss C!u"tr$es# C 30 CORP0 =IN0 ,&1# ,(67 ,(C ;,)))<0 C) See )e"er*''y 3ohn H0 Barton# P*te"t$") *"% A ess t! C'e*" E"er)y Te h"!'!)$es $" De&e'!p$") C!u"tr$es( BRIDJES TRADE BIORES8 TRADE D ENPIRONMENT REP0# Dece $er ,))># at (# *&*$'*/'e *t htt*899ictsd0net9i9ne2s9$ioresre+ie291)C,-90
66

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

eGists 2ithin !reen technolo!/ ar4ets0C1 Co *etiti+eness s'!!ests that "or a !i+en technolo!/# a s'$set o" the 4no2led!e reF'ired to *rod'ce an end7*rod'ct is shared $et2een co *etin! "ir s and th's is not the $asis '*on 2hich co *etiti+e ad+anta!e is !arnered0 In other 2ords# "or a !i+en technolo!/ that is a""orded intellect'al *ro*ert/ ri!hts# the +al'e7added *ortion o" that ri!ht "or 2hich *rotection is necessar/ to aintain "inancial +ia$ilit/ is F'ite s all co *ared to the "'nctional eGistence o" the technolo!/ in so e "or 0 Sliced another 2a/# in a co *etiti+e sche e in 2hich *rod'cers o" !reen technolo!/ are 2or4in! to distin!'ish their *rod'cts in 2a/s that create ar4et niches# older /et "'ll/ "'nctional +ersions o" that technolo!/ 2ill ha+e $een created $'t le"t aside "ro the co *etiti+e eF'ili$ri' transaction0C,

B- A )'!/*' e1 h*")e +!ru# .!u'% *p$t*'$Ce up!" the str*t$+$ *t$!" !+ $"te''e tu*' pr!perty &*'u*t$!"
These t2o ancillar/ as*ects o" intellect'al *ro*ert/ in a co *etiti+e re!i e a""ord an o**ort'nit/ in 2hich *rod'cers co'ld theoreticall/ increase their ar4et share $/ treatin! older +ersions o" technolo!/Wor the co on as*ects o" the technolo!/ that ha+e $eco e co *onents "or 2hich *rotection no lon!er a""ords an/ *ricin! ad+anta!e to the technolo!/Was a se*arate niche "ro the co *etiti+e eF'ili$ri' '*on 2hich eGtraction o" *ro"its "ro a niche ar4et co'ld $e !arnered0 Theorists 2ho s'!!est that *'$licl/ "'nded in+entions sho'ld $e +ol'ntaril/ licensedC% $e!in to *ic4 '* on this notion $'t i!nore to so e eGtent the re!'lator/ necessit/ o" co *ellin! a "ir to do soW s'ch a trans"er 2o'ld not $e costless0 Instead# e *lo/in! a "ree ar4et echanis 2o'ld incenti+iHe "ir s to !i+e '* as*ects o" their technolo!/# *erha*s e+en in Aread/7to7installB "or # i" *ro"its co'ld $e ade "ro that transaction0
1C

C- The )'!/*' e1 h*")e +r*#e.!r0: Br$")$") te h"!'!)y h!'%ers( VCs( *"% %!#est$ e"trepre"eurs t!)ether t! re#!&e $"+!r#*t$!" *sy##etr$es
The "ra e2or4 'nder 2hich s'ch transactions 2o'ld occ'r co'ld rese $le the s'ccess"'l non7!o+ern ental !lo$al eGchan!es that $rin! to!ether do estic "ir s# +ent're ca*italists# and technolo!/ holders in a "or' that red'ces in"or ation as/ etries and transaction costs# *ro otes a!ree ents to the eGtent o" reso'rces and technolo!ies that can $e $esto2ed 2itho't in"rin!in! '*on the IP ri!hts o" others# and atches technolo!/ 2ith 'ses and settin!s "or 2hich their i *le entation ser+es a!!re!ate
1>

I%Thin4 Lindo2s -6 in a 2orld o" Lindo2s TP0 See Barton# supr* note C)0
C1 C,

C%

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

social 'tilit/ ost e""icientl/0 =or eGa *le# Ne2 Pent'res India is a *ro!ra see4in! to "acilitate !reen technolo!/ in+est ent in India0 C& Its !enesis 2as *re ised '*on $rid!in! the !a* $et2een s all and edi' sector *ri+ate $'sinesses and the in+estor co 'nit/ $/ A*ro+idin! inno+ati+e entre*rene'rs 2ith ana!e ent trainin!# $'siness ad+isor/ ser+ices# *ro"essional entorin! and access to ca*ital and ar4ets0BC6 The *ro!ra achie+es this !oal $/ *ro+idin! entorin! o**ort'nities to entre*rene'rs to erase the learnin! !a* $/ connectin! the to *otential in+estors# and $/ creatin! a net2or4 o" in+estors in order to "oster the creation o" co *letel/ ne2 !reen enter*rises0CC The techniF'es that Ne2 Pent'res India has e *lo/ed co'ld +er/ 2ell $e 'tiliHed on a ore !lo$al scale0 De+elo*in! co'ntries and do estic entre*rene'rs co'ld 1oin to!ether in a !lo$al consorti' 2ith PCs and holders o" technolo!/0 Ho2e+er# $eca'se one o" the ain !oals o" this !lo$al net2or4 2o'ld $e to !et entre*rene'rs and de+elo*in! co'ntries 2ith +er/ lo2 econo ic ca*ital access to !reen technolo!/# the nat're o" the in+est ent relationshi* 2o'ld $e so e2hat di""erent0 Each *art/ that de ands technolo!/ 2o'ld *resent a $'siness *lan that chronicles the eGtent to 2hich this technolo!/ co'ld $e *'t to *rod'cti+e 'se in its s*eci"ic ar4et and its *otential "or !ro2th0 Pent're ca*italists 2o'ld read this de and and its in+est ent *otential and choose 2hich *ort"olios to hel* in ter s o" $'ildin! eF'it/ and strate!/0 These PCs 2o'ld then# still 2ithin the o*eration o" the "or' # anal/He the technolo!ical s'**l/ held $/ technolo!/ holders0 This echanis is s/ner!istic $eca'se technolo!/ holders co'ld s'r+e/ the +ario's o**ort'nities *resented 2ithin the "or' and s'$seF'entl/ anal/He its o2n $'siness strate!/ to see 2hether in+estin! +ario's technolo!ical co *onents 2o'ld $e in its $'siness interest0
1(

The 4e/ to this echanis is that the o**ort'nities 2o'ld not necessaril/ s*ea4 to the c'ttin!7ed!e or eGtre el/ hi!h7end o" the technolo!ical s*ectr' 0 Since an/ technolo!/ holders ha+e 2or4in! "or s o" !reen technolo!/ that 2o'ld not $e +ia$le in a hi!her7end co *etiti+e ar4et# the/ ha+e a lot o" latent technolo!/ that is not eGchan!ed in the ar4et*lace0 Beca'se this "or' 2o'ld in+ol+e a lot o" entre*rene'rs in co'ntries that ha+e not reached the c'ttin!7ed!e on the technolo!ical scale $'t still de and !reen technolo!/ in a "or that is
1-

See )e"er*''y Ne2 Pent'res India8 A$o't Us# htt*8992220ne2+ent'resindia0or!9n+i9ne2desi!n9a$o't's01s* ;last +isited No+0 &# ,))(<0 C6 NEL PENTURES INDIA# INPESTOR =ORUM )>8 =ACILITATINJ SUSTAINABLE ENTERPRISES % ;,))><( *&*$'*/'e *t htt*8992220ne2+ent'resindia0or!9n+i9 $ase9attach ents9,1-&9I=N,))>N,)P ro!ra N,)$oo40*d"0 CC I%C&

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

*re"era$le to con+entional ethods and 2o'ld hel* *lant the seed "or technolo!/ 'tiliHation in a A!reenB direction# the "or' essentiall/ o*ens '* de and and s'**l/ that other2ise is o$"'scated $/ the *rior ina$ilit/ o" the ar4et to e""ecti+el/ ca*t're these ele ents0 Here# all holders o" a !i+en technolo!/# s'ch as solar *o2er# co'ld co e to!ether in the "or' and *ercei+e 2hat as*ects o" their technolo!ical holdin!s are shared $/ all e $ers and th's not necessar/ to *reser+e in an eGcl'si+e ri!hts sense 'nder traditional notions o" intellect'al *ro*ert/ *rotection0 The/ co'ld then a!ree to A*ass o""B this technolo!/# either in technical 4no27ho2# allo2ances to *rod'ce# or $/ *ac4a!in! it in 2or4a$le "or # to entre*rene'rs 2ho 2o'ld then *rod'ce or *'t into 'se these technolo!ies in their destination ar4ets0 The sa e notion o" latent technolo!/ di""'sion# altho'!h not e *lo/in! a *ro"it7oriented incenti+e sche e# has alread/ *ro+ed s'ccess"'l in the real o" *atent donations0 =or eGa *le# the Lisconsin7 $ased Center "or Ad+anced Technolo!/ and Inno+ation ;CATI< creates a "or' 2here$/ co *anies a/ donate *atented technolo!ies to $e 'tiliHed $/ *otential entre*rene'rs0C> These are technolo!ies that co *anies are not *'ttin! to 'se $eca'se their $'siness strate!/ t'rned else2here# $'t 2o'ld still $e 'se"'l +is7X7+is co ercial de and0C( CATI deter ines 2hich o" these donations are co erciall/ +ia$le and *airs the 2ith entre*rene'rs 2ho ha+e a $'siness *lan to introd'ce the into the ar4et*lace0 Alternati+el/# in the case o" *re7co ercialiHation technolo!ies# CATI *artners acade ia and ind'str/ to!ether to render the donations co erciall/ +ia$le0C- CATI has s'ccess"'ll/ le+era!ed donations "ro .ra"t# S0C0 3ohnson# and Boein!0>)
,)

Here# the sche e 2o'ld $e a co $ination o" a donation# license# and sale0 The technolo!/ trans"er 2o'ld $e a donation to the eGtent that technolo!/ that is technicall/ an IP ri!ht 2o'ld $e allo2ed to $e 'sed "reel/ $eca'se it adds no +al'e to the "ir sE co *etiti+e ad+anta!e0 It 2o'ld $e a license to the eGtent that "ir s i!ht decide to !arner a share o" the *ro"its "ro end7'sers $/ !rantin! this *er ission0 It co'ld $e a sale i" technolo!/ holders decide to sell AoldB +ersions o" technolo!/0 The *oint o" the "or' is not to li it the t/*e o" trans"er to one "or o+er another# $'t to "acilitate in e+er/ 2a/ *ossi$le the t/*e o" trans"er that increases a!!re!ate 'tilit/ 2hile at the +er/ least $ein! *ro"it7ne'tral on the one end# and *ro"it7 ind'cin! on the other0
,1

3ere / Bond# Le&er*)$") P*te"t D!"*t$!" t! Gr!. Te h"!'!)y,B*se% Bus$"esses# > EDNOL# Ma/ ,1# ,))># at ,0 C( I% at 10 CI%- at 17& >) I%- at ,0
C>

,))-

DU2E LA4 5 TECHNOLOGY REVIE4

No0 1

CONCLUSION
The ar4et "or !reen technolo!/ in de+elo*ed co'ntries is !ro2in! at a nearl/ eG*onential rateWalon! 2ith PC in+est ent in these *ort"oliosW$'t the nascent de and "or !reen technolo!/ in de+elo*in! co'ntries re ains lar!el/ 'nta**ed0 Creatin! a !lo$al eGchan!e net2or4 in+ol+in! holders o" eGistin! !reen technolo!/# +ent're ca*italists 2ith the eF'it/ and "inancin! 4no27ho2 to see4 o't stron! in+est ent o**ort'nities# and indi!eno's de anders o" !reen technolo!/ 2ell a2are o" their local en+iron ent 2ho 2o'ld *'t the technolo!/ to *ositi+e 'se# allo2s "or an/ o" the con+entional $arriers o" entr/ to $e transcended0 Intellect'al *ro*ert/ ri!hts concerns 2o'ld $e red'ced $eca'se strati"ication o" technolo!ies 2o'ld occ'r so that onl/ the *ortions o" technolo!/ that do not i *in!e '*on co *etiti+e ad+anta!e 2o'ld $e considered0 .no2led!e and learnin! to s'ccess"'ll/ *rod'ce and o*erate s'ch technolo!ies is c'red $/ the in"or ation eGchan!e 2hen PCs 2or4 2ith technolo!/ de anders to de+ise s'ccess"'l $'siness *lans and eF'it/ 'tiliHation0 Credit constraints and eF'it/ $arriers 2o'ld th's $e lo2ered0 Instead o" creatin! andates that i *in!e '*on the *ro"it oti+e o" "ir s# or the hereto"ore "'tile atte *ts to lo2er trade $arriers that erel/ red'ce disincenti+es instead o" create incenti+es# a !lo$al eGchan!e "or' o" !reen technolo!/ 2o'ld hel* atch the *ositi+e incenti+es o" PCs# lar!e "ir s# and indi!eno's o*erators to *ro ote technolo!/ "lo2s that increase the indi+id'al 'tilit/ o" each *art/ and also s*ea4s +er/ stron!l/ to a!!re!ate social 'tilit/0
,,