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Technology transfer in bilateral program and lessons learned: The Case of Korea

2. 1. Technology transfer or cooperation?. Technology is a good that can be transferred?Globalization makes the technological competitiveness as a primary factor in world economy system.Public funding replaces the direct subsidy of each countries' national economic policymore R

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Technology transfer in bilateral program and lessons learned: The Case of Korea

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    1. Technology transfer in bilateral program and lessons learned: The Case of Korea KEMCO, April, 2002 Seoul, Korea Dr. Suk-hoon Woo

    2. 2 1. Technology transfer or cooperation? Technology is a good that can be transferred? Globalization makes the technological competitiveness as a primary factor in world economy system. Public funding replaces the direct subsidy of each countries’ national economic policy more R&D expenditure, but the result of research is considered as national strategy factor.

    3. 3 Network effect of technology A combination of units of technology is “one system of technology. Path dependency of investments already made. Choice of one technology is not just a choice of one unit, but a choice of future system ex) natural gas pipe-line network, electrification and grid network

    4. 4 Transfer activities are multiple and complex Joint research, FDI, joint-venture, consortium can be used as a implementation tools of technological cooperation. Public program for demonstration project can be understood as a principal scheme for the technology transfer under UNFCCC role of government and public sector

    5. 5 2. Criteria for needs assessment Market potential : the technology near to commercialization (pre-commercialization stage, pre-standardization stage) Public oriented technology Trigger-effect to create a new markets with advanced technology Technology includes “know-how” of soft technologies like energy management

    6. 6 3. Selected technologies ESCO(Energy Service Company) and energy management system Methane capture and reuse in waste land-fill site Heat recovery, including heat-pump

    7. 7 4. ESCO Experiences Process Circulation of proposals for the national stake-holders (1999) - phase 1 Selection of the ESCOs and potential projects Hyundai Motor Ulsan Factory was selected for the demonstration projects Co-auditing : Korean ESCO and US partner Project identification

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    9. 9 Barriers Funding : who will pay for the initial survey? Sempra, EPS Korea, Hyundai Motors, or KEMCO/NREL? Technological system : the difference of regulation of environment related to the painting process (ex. Treatment of VOCs) ESCO market structure : difference of auditing tools and system

    10. 10 Limited success in Hyundai ESCO projects success Technology transfer throughout a experience of auditing Detailed auditing report and project identification - heat recovery process in painting process Failure EPS Korea has been bankrupted - external cause Difference of funding system for ESCO project public funding (Korea) versus private funding (US) Hedging for the exchange rate

    11. 11 5. Lessons learned Technology transfer must be considered in the context of national strategy, including specific circumstances and development stages. Experience matters : technology it-self is a kind of evolutionary process, not just a good. History matters : path dependency, network effect must be considered.

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