Legal and Institutional Framework for Transfer of Technology in Ethiopia
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Date
2015-04
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Addis Ababa University
Abstract
The relevant policy documents of the Ethiopian government identify access to and dissemination
of foreign technologies as a key factor for the achievement of development goals of the country.
It is also a day to day occurrence to hear high government officials through media outlets
asserting the importance of technology transfer. Nonetheless, foreign technologies cannot be
effectively adapted in a vacuum. In addition to having the required technological capability to
absorb foreign technologies, suitable legal and institutional arrangements need to be put in
place. This study paper thoroughly analyzes laws of the country that have direct or indirect
impact on technology transfer activities. It also examines the powers, responsibilities and
technology transfer activities of government organs which have mandates to deal with
technology transfer process.
Using the method of both scholarly and legislative documents analysis and interviews with
government officials, the findings of the study reveals the inadequacy and fragmented nature of
the rules on transfer of technology. Contrary to prevailing foreign experiences, determining the
terms and conditions of technology transfer agreements is left to the absolute autonomy of the
parties, there are no packages of incentives to persons who engage in technology transfer
activities and the investment law fails to provide for attractive incentive to foreigners who invest
jointly with Ethiopian nationals. The patent and competition laws overlook to regulate restrictive
patent licensing practices which may have the effect of defeating one of the very purposes of
introducing the patent system, i.e, encouraging the transfer and adoption of foreign technology.
Furthermore the country lacks compressive piece legislations that regulate franchising business
and trade secrets protection.
As regards institutional setups for the transfer of technologies in Ethiopia, the study identified,
among others, the Ministry of Science and Technology, Ethiopian Intellectual Property Office
and the Micro and Small Enterprises Agency as government entities which have mandates that
relate with technology transfer. Among other things, absence of coordination, overlap of
mandates, bureaucratic hurdles, and absence of monitoring and follow up mechanisms hinder
these institutions from undertaking effective and efficient technology transfer activities.
Finally, the writer of the paper suggests some solutions that may help to overcome the
abovementioned shortcomings. He recommends that it is high time to adopt a technology
transfer regulation that: prohibit the conclusion of restrictive technology transfer agreements;
provide for mechanisms for monitoring and follow up procedures; and provide for packages of
incentives for persons who engage in technology transfer activities. He also suggests for the
amendment of some parts of the patent law and inclusion of some other new legal arrangements
in the same. In addition, he calls for the enactment of compressive franchising and trade secretes
protection laws. He further advises that a special governmental organ should be established.
This government organ shall have the mandate to look over and coordinate all sorts of
technology transfer activities in the country.
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Keywords
importance of technology transfer,dissemination of foreign technologies,Legal and Institutional Framework