Cleantech Innovation by Developing Countries

Abstract

Cleantech, technology capable of mitigating or adapting to climate change, is critical for a country to address climate change and build sustainable development effectively. Since the 1970s, the global community has emphasized the voluntary transfer of cleantech from developed countries to developing countries, since the former owns the majority of the existing cleantech and the latter needs cleantech. This focus has produced limited results. This article proposes we shift our focus to global cleantech development and deployment (including international cleantech transfer) instead.

This article proposes a pathway for developing countries, especially the least developed countries, to attract foreign cleantech and develop domestic cleantech. The pathway includes three phases: international aid, international cleantech cooperation, and domestic cleantech innovation. This article suggests that the global community support developing countries in the establishment of their own cleantech innovation systems. Such purposeful support may come in the forms of international aid and mutually beneficial international cleantech cooperation. International aid helps countries, e.g., the least developed countries, to build domestic capacities for cleantech innovation and cleantech importation. Mutually beneficial international cleantech cooperation enables developing countries that have acquired such capacities to move further along toward domestic cleantech innovation. For domestic cleantech innovation, this article suggests that, in principle, a developing country should send clear policy signals to its private sector to indicate the government’s long-term commitment to cleantech innovation. This article further proposes that the developing countries leverage diverse innovation tools, including customized intellectual property right (IPR) regimes and non-IPR tools such as prizes and innovation commons.

Keywords: innovation policy, IPR, prize, innovation common, cleantech, climate change, sustainable development, developing country