Transfer of Technology for Development in Jordan: Laws and Policies

Abstract

In the modem global economy, the creation of knowledge and· its adaptation to product designs and production techniques are increasingly essential for commercial competitiveness and economic growth of countries. In view of that, international technology transfer has played a critical and vital role in economic transformation and development of countries. Furthermore, the world economy has witnessed a growing internationalization reflected in terms of the rising share of international trade and foreign investment flows.

In Microcosm: The Quantum Revolution in Economics and Technology, George Gilder confirms that wealth is no longer derived from possessing physical resources: 'Today, the ascendant nations and corporations are masters not of land and material i:esources but of ideas and technologies."1 Consequently, "an entirely new form of international commerce is evolving around transactions that are based on the transfer of intellectual property."

However, it would be very difficult for developing countries-such as Jordan-to penetrate international markets and increase their exports without systematic and efficient transfer of technology from the developed world to the developing countries. Therefore, transfer of technology is vital for the growth of less-developed countries because it provides access to the international markets and financial resources. In addition, it provides developing countries with up-to-date technologies that allows them to compete on the world stage. Furthermore, for developing countries like Jordan to implement new technological information into their own production structures, they are dependent on access to inventions and expertise abroad along with their own abilities to absorb and adapt them into their own environments.

Accordingly, for Jordan to achieve economic development based on knowledge and technology, it has to pursue technology transfer from· the developed world as well as building the local technical capacities based on such transfer. Thus, the primary objective of this dissertation will be the articulation of a comprehensive study of factors, methods, and developments that should be sought and that will play a significant role in achieving such knowledge-based economic development.

It is within this context that the protection and enforcement of intellectual property rights (IPRs), along with other factors, such as expanding the technical infrastructure and maintaining an open and transparent market become particularly important. The foundation of commercial power has shifted from capital resources to intellectual property resources. In fact, capital resources are now dominated by intellectual property such as technological innovation, patents, copyrights, trademarks, and trade secrets. Therefore "corporations that properly manage intellectual property and intangible assets will be in commanding positions of economic power." As a sequence, this would have a profound impact on the development of their countries of citizenship.

Strong IPRs are seen to encourage economic development by promoting domestic innovation by protecting the development of nascent technology; preventing brain drain by ensuring innovators are rewarded for their effort; and fostering technology transfers, such as foreign direct investment, licensing, and imports. However, the various means by which IPRs influence Foreign Direct Investment (FDI) are subtle and complex. Moreover, it must be emphasized that strong IPRs alone do not sufficiently generate strong incentives for firms to invest in a country.

Accordingly, I will study the correlated relationship between implementing IP rights and economic development. In view of that, I also intend to study the principles of intellectual property rights in the United States since they are considered to be the model in this particular field of law and the main reason behind the pioneer position of U.S. tech-corporations in the world. The main purpose for this dissertation in studying the U.S. IP laws and system is to draw guidance in developing a successful parallel system in Jordan. Furthermore, I will study the laws as well as the system of intellectual property rights in Jordan. I will examine the compliance of the laws and system in Jordan to the international standards and to the standards of most developed countries and the U.S. in particular. The purpose of this examination is for this dissertation to come up with specific developments Jordan needs to accomplish for the establishment of an intellectual property system that would help in promoting the transfer and development of technology in the country.

Likewise, it is within the same context of the significance of technology transfer for the development of Jordan that the methods of transfer of technology become noticeably important. Transfer of technology can take place through international trade in goods and services, foreign direct investment in the form of wholly-owned subsidiaries or in the form of joint ventures, and technology licensing. Of these, the most influential methods of technology transfer on the development of technology in Jordan would be foreign direct investment and technology licensing as will be weighted in this dissertation.

Furthermore, since most of the world's technology is in the hands of multi-national corporations and the bulk of this technology is transferred through foreign investment by those same corporations in the form of FDI and licensing, I will study foreign direct investment and licensing as means of technology transfer along with the factors influencing their flows in general, and to Jordan in particular. Further, and most importantly, I will examine the potential impact of those methods of technology transfer on the process of technological and economic development in general and for Jordan in particular.

In addition, I will set the business advantages and disadvantages of Technology Licensing and FDI for both the host (Jordan) and the home country of transferring corporations. I will also briefly explain the impact of licensing and FDI on the multinational corporations involved in such transfer. Furthermore, I will shed light on the legal difficulties that the multi-national corporation may encounter during the process of transferring technology to Jordan through licensing and FDI.

After defining the developments required in Jordan's IP system as well as determining technology transfer methods that will serve Jordan's best interests in technological and economic development, I will study the factors that would have a significant impact on the success of technology transfer and development in Jordan. There are many factors, including developing investment attraction and retention programs establishing the proper conducive business environment for high-tech companies, and building the knowledge economy.

Building investment attraction and promotion program will demand the establishment of specialized institutions and policies. I will study the proper characteristics of the successful investment promotion agency and the governmental policies that will facilitate and support investment in Jordan. This will lead to the study of the next factor of technology transfer, the establishment of a conducive business environment. The establishment of such environment will require inter alia public sector reform, promotion of a more competitive private sector, and development of proper and adequate infrastructure for high-tech industries.

In addition, investments in knowledge could increase the productivity of the other factors. Therefore, investments in knowledge are the key to long-term economic growth due to their capability to increase returns. Further, building the knowledge economy will require government policies that emphasize upgrading human capital through providing special and work-related education, specifically in the 'high-tech' sector, and incentives to continuous work-related training. In a word, the knowledge economy depends on the promotion of an entrepreneurial environment, promotion of innovation, as well as research and development.

I hope that this dissertation will help my home country's policy makers in articulating a practical strategy for a successful transfer of technology that will lead to a prosperous knowledge-based economy.

Subject Area

Law

Degree Date

2007

Document Type

Dissertation

Degree Name

S.J.D.

Department

Dedman School of Law

Advisor

Peter Winship

Second Advisor

Shubha Ghosh

Third Advisor

Ruth Okediji

Number of Pages

xiv, 430

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