UKIndia collaboration on low carbon technology transfer Phase
UK-India collaboration on low carbon technology transfer: Phase II interim results Dr David Ockwell and Alexandra Mallett December 2008 d. g. ockwell@sussex. ac. uk
Overview 1. 2. 3. 4. Background (Phases I and II) Approach Interim findings Next steps
UK-India Collaborative Study Background: • G 8 Gleneagles 2005: Developing countries pressed for new approach to international cooperation on clean energy technologies • UK Government and the Government of India decide to collaborate on study to assess barriers to transfer of low carbon energy technology between developed and developing countries
UK-India Collaborative Study Aim: Phase I (complete) 1. Identify barriers to successful technology transfer 2. Identify key policy considerations for overcoming barriers
UK-India Collaborative Study Aim: Phase II (underway, due for completion Feb 09) 1. Develop a taxonomy of policy considerations for low carbon technology transfer 2. More detailed analysis of intellectual property rights (IPRs) & relevant policy approaches for addressing this issue 3. Recommend mechanisms and technologies to foster joint research, development, demonstration and deployment (R, D, D&D) between developed and developing countries
Study team • The Energy and Resources Institute, TERI • SPRU (Science & Technology Policy Research), University of Sussex • Institute for Development Studies, IDS • Erik Haites – Margaree Consultants
Study approach 1. Focus on technological capacity development
Essential knowledge flows Technology suppliers Supplier firms’ engineering, managerial and other technological capabilities Technology transferred Flow A Flow B Flow C Capital goods, services & designs Technology importers New production capacity Skills & know-how for operation & maintenance Knowledge & expertise behind technology Accumulation of technological capacity
Technological capacity building
Study approach 1. Focus on technological capacity building 2. Case study based approach:
Case study selection Stage of technology development Pre-commercial Sectors Low-carbon power generation technologies Network / infrastructure technologies Low carbon end use technologies Supported commercial Commercial but slow diffusion
Study approach 1. Focus on technological capacity building 2. Case study based approach: i. Integrated gasification combined cycle (IGCC) for power generation ii. Energy efficient technology adoption in Indian SMEs (glass and foundry industries) iii. Wind energy iv. Solar PV v. Hybrid vehicles
Study approach 1. Focus on technological capacity building 2. Case study based approach: i. Integrated gasification combined cycle (IGCC) for power generation ii. Energy efficient technology adoption in Indian SMEs (glass and foundry industries) iii. Wind energy iv. Solar PV v. Hybrid vehicles 3. Emphasis on consultation with industry and policy makers
Questionnaire to stakeholders • Present status of technology development in their organisation and future plans • IPR issues/apprehensions • Perceived risks/constraints • Collaborative RDD&D • Government involvement
Interim findings: - Case studies - Generic issues
Interim findings: Integrated gasification combined cycle (IGCC) for power generation • Key barrier = working with high ash Indian coal • Technology not yet commercial • High potential for international collaboration • Some caution on behalf of international firms re. who they collaborate with
Interim findings: Energy efficient technology adoption in Indian SMEs SME sector in India accounts for: • One-third of total exports • Half of industrial output • 2 nd largest employer after agriculture Salient features of the SMEs: • Use indigenous knowledge & techniques • Inefficient resource use • No off-the-shelf solutions easily available • Little R&D conducted
Interim findings: Energy efficient technology adoption in Indian SMEs • IPRs not an issue • Interesting case of high potential for aggregate emissions reductions without issues associated with large industrial installations – needs based and incremental improvements • Reliant on willingness of international firms to share technology • Strong emphasis on long term international, public-private-NGO collaboration • Possible domestic policy push – switch from coal to gas in specific industrial area: Delhi / Agra / Jaipur
Interim findings: Wind energy • Suzlon highly successful (top 5 globally) • Used commercial approach to access IPRs via acquisition & licensing e. g. R&D in Netherlands, marketing in Denmark • Collaboration important e. g. Austrian company for large capacity induction generators • Some questions re. access to state of the art • Question re. nature of activities pursued in India and implications for technological capacity building
Interim findings: Solar PV • Indian market export driven • To date IPRs for manufacturing equipment largely stays with foreign firms – Indian firms’ niche = to produce at lower cost • IPRs not a barrier as yet • IPRs could become more of an issue as firms move towards manufacture along the value chain & more automated processes PV grade silicon & thin film e. g. • Dependent on how concentrated relevant parts of the value chain are • Recent industry development largely driven by domestic policy
Interim findings: Hybrid vehicles • Dominated by international players, especially Toyota • IPRs an issue - not perceived as prohibitive, but slowing diffusion • Strong domestic efforts in India to develop hybrid technology: 1. Acquisition e. g. Tata purchasing Norweigan EV company Miljo 2. Collaboration: National Hybrid Propulsion Platform - OEMs will share IP with govt. funding & IP in public domain after 2 -3 yrs 3. Licensing from second tier firms 4. In-house: personnel changes & Indian subsidiaries learning from GM
Interim findings: Generic issues - IPRs • IPR relevant both in terms of: - Hardware (products), and - Software (processes and codified knowledge) • Often complex – patents applicable across range of components and processes • Technology Transfer Agreements (TTA), including IPR, usually worked out between technology supplier & the company receiving the technology • Industry perceived people to be the key barrier to technology transfer: “Where there’s a will there’s a way”
Interim findings: Generic issues - IPRs • IPRs not generally identified as a barrier, but doesn’t address the issue of rate of diffusion • Question as to whether Indian firms have access to the cutting edge and relative role of IPRs at that point • Indian companies generally happy to follow-on – link to issues of leapfrogging and overall industrial strategy • Leaves unanswered the question of long term technological capacity building
Interim findings: Generic issues - RDD&D • Collaborative initiatives generally driven by Indian industry • Market access generally driving international company involvement • Strategic approach towards second tier companies where can’t access existing state of the art e. g. hybrid vehicles • Very little awareness or attention paid to international mechanisms
Next steps • Key findings launched at Delhi Sustainable Development Summit, February 2009 • Final report launch at side event in Bonn, May 2009
www. sussex. ac. uk/ sussexenergygroup/barriers
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