XUE Lan: Challenges to global governance of science, technology and innovation

Challenges to Global Governance of Science, Technology and Innovation Prof. Lan Xue School of Public Policy and Management and China Institute for Science and Technology Policy Tsinghua University (UK-China Innovation for Sustainability and Equitable Growth, Beijing, March 19, 2010)

I. Background
The trend of globalization is accelerating, with both positive and negative impacts on nations, and new challenge for global governance:
A==>New global challenges that require innovative global solutions;
B==>Conflicts and coordination with existing global governance system when developing countries are becoming important global players.

Global governance challenges
Global challenges
Climate change—global commons problem;
Poverty and underdevelopment;
Pandemics, and other public health issues;
Financial regulations
S&T, and innovation;
……

Existing global governance system and its failure
Ideologies, rules, and norms
E.g. appointment of Word Bank and IMF leadership positions;
Organizations
UN, WTO, IEA, and etc.
Leadership
US after WWII
OECD, G8
……

Reform of the existing global governance—G20 as an example
The format of G20—the role of G20
Summit meetings with careful preparation
The geometry of G20—the legitamacy of G20
Who is in and who is not?
The management of G20
A permanent secretariat? Where?
The agenda issue:
Whose agenda?
Accountability:
To whom?

II. A focus on global innovation system
Public knowledge production system—Academic markets
Funding—national government or international joint efforts (such as ITER project);
Performing—universities, public research institutes, enterprises, and international organizations (CERN)
Mechanism—publication through peer reviewed system;
Incentive--name recognition and other rewards linked to it.

Private knowledge production system: commercial market
Funding—domestic and multinational firms
Performing—domestic and multinational firms
Mechanism—knowledge market based on IPR protection;
Incentive—super-profits from temporary monopolies.

Global Governance Challenges:
Declining supply of public goods:
Shortage of national funding for basic research
Privatization of public knowledge
Coordination problem:
Super-competition for public funding in “hot” fields;
Unhealthy competition on standards
Knowledge divide
Basic education and higher education;
Lack of knowledge institutions for knowledge diffusion;
Brain drain problems for developing countries

Global supply v.s. local demand in public knowledge
Research agenda setting: whose agenda?
Global publication system vs local dissemination (see graphs below)
Through what channels?
Inadequate IP regime:
The distorted use of IP regime (TRIPS) to block innovation;
The dominance of MNCs in licensing and standards* (see cases below)

MNCs dominance in standards setting
About 50 global corporations determine what 250 ICT standard consortia do, and more importantly, how they do it.
The top ten leaders: IBM, Microsoft, Fujitsu, Intel, Hewlett Packard, Hitachi, Sun Microsystems, Nokia, Ericsson and Texas Instruments.
Of the 50 major players, 25 are from the US, 12 from the EU, 8 from Japan, 5 from emerging countries

Governance reforms--some initial ideas
World Science Foundation
Funding for global challenges
A more balanced IP regime
Reform on TRIPs
Improved governance of standards
Regional higher education system and knowledge institutions for developing countries?
Creative ways of using existing knowledge?
Knowledge pool for green technology;
Accelerated diffusion of green technologies

What could be done by China and UK?

XUE Lan: Challenges to global governance of science, technology and innovation

by STEPS Centre on Aug 17, 2010

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