National policy and SMEs in technology transfer: the case of Israel

Increasing the rate of climate technology transfer is a critical concern. The international community facilitates the development and deployment of climate technologies for the needs of the South in two primary ways: first, through the use of multilateral frameworks for technology transfer and, second, through in-country capacity building for research, development, and deployment in developing countries. However, scant attention is given to whether national-level frameworks in industrialized countries can support technology transfer. This issue may be of particular relevance to small and medium enterprises (SMEs) in developed countries, due to their relative lack of experience in international markets. The barriers that prevent SMEs from developing and exporting more technologies to the South are identified, by using Israel as a case study. Although Israel is an important global source of climate technology innovation, it currently does not engage much with the developing world. Four principle barriers to greater involvement of OECD SMEs in technology transfer for climate mitigation in developing countries are: (1) lack of knowledge of market needs in developing economies, (2) lack of financial mechanisms to support R&D, (3) lack of opportunities for partnership building, and (4) lack of support for demonstration sites in developing countries.