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


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Professor XUE Lan, Tsinghua University.

Presentation to the UK-China Innovation Workshop for Sustainable and Equitable Development, Tsinghua University, 19 March 2010, co-organised by China Institute for Science and Technology Policy (CISTP) at Tsinghua University and the STEPS Centre.


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

  1. 1. 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)
  2. 2. I. Background <ul><li>The trend of globalization is accelerating, with both positive and negative impacts on nations, and new challenge for global governance: </li></ul><ul><ul><li>A==>New global challenges that require innovative global solutions; </li></ul></ul><ul><ul><li>B==>Conflicts and coordination with existing global governance system when developing countries are becoming important global players. </li></ul></ul>
  3. 3. Global governance challenges <ul><li>Global challenges </li></ul><ul><ul><li>Climate change—global commons problem; </li></ul></ul><ul><ul><li>Poverty and underdevelopment; </li></ul></ul><ul><ul><li>Pandemics, and other public health issues; </li></ul></ul><ul><ul><li>Financial regulations </li></ul></ul><ul><ul><li>S&T, and innovation; </li></ul></ul><ul><ul><li>…… </li></ul></ul>
  4. 4. Existing global governance system and its failure <ul><li>Ideologies, rules, and norms </li></ul><ul><ul><li>E.g. appointment of Word Bank and IMF leadership positions; </li></ul></ul><ul><li>Organizations </li></ul><ul><ul><li>UN, WTO, IEA, and etc. </li></ul></ul><ul><li>Leadership </li></ul><ul><ul><li>US after WWII </li></ul></ul><ul><ul><li>OECD, G8 </li></ul></ul><ul><li>…… </li></ul>
  5. 5. Reform of the existing global governance—G20 as an example <ul><li>The format of G20—the role of G20 </li></ul><ul><ul><li>Summit meetings with careful preparation </li></ul></ul><ul><li>The geometry of G20—the legitamacy of G20 </li></ul><ul><ul><li>Who is in and who is not? </li></ul></ul><ul><li>The management of G20 </li></ul><ul><ul><li>A permanent secretariat? Where? </li></ul></ul><ul><li>The agenda issue: </li></ul><ul><ul><li>Whose agenda? </li></ul></ul><ul><li>Accountability: </li></ul><ul><ul><li>To whom? </li></ul></ul>
  6. 6. II. A focus on global innovation system <ul><li>Public knowledge production system—Academic markets </li></ul><ul><ul><li>Funding—national government or international joint efforts (such as ITER project); </li></ul></ul><ul><ul><li>Performing—universities, public research institutes, enterprises, and international organizations (CERN) </li></ul></ul><ul><ul><li>Mechanism—publication through peer reviewed system; </li></ul></ul><ul><ul><li>Incentive--name recognition and other rewards linked to it. </li></ul></ul>
  7. 7. <ul><li>Private knowledge production system: commercial market </li></ul><ul><ul><li>Funding—domestic and multinational firms </li></ul></ul><ul><ul><li>Performing—domestic and multinational firms </li></ul></ul><ul><ul><li>Mechanism—knowledge market based on IPR protection; </li></ul></ul><ul><ul><li>Incentive—super-profits from temporary monopolies. </li></ul></ul>
  8. 8. Global Governance Challenges: <ul><li>Declining supply of public goods: </li></ul><ul><ul><li>Shortage of national funding for basic research </li></ul></ul><ul><ul><li>Privatization of public knowledge </li></ul></ul><ul><li>Coordination problem: </li></ul><ul><ul><li>Super-competition for public funding in “hot” fields; </li></ul></ul><ul><ul><li>Unhealthy competition on standards </li></ul></ul><ul><li>Knowledge divide </li></ul><ul><ul><li>Basic education and higher education; </li></ul></ul><ul><ul><li>Lack of knowledge institutions for knowledge diffusion; </li></ul></ul><ul><li>Brain drain problems for developing countries </li></ul>
  9. 9. <ul><li>Global supply v.s. local demand in public knowledge </li></ul><ul><ul><li>Research agenda setting: whose agenda? </li></ul></ul><ul><ul><li>Global publication system vs local dissemination (see graphs below) </li></ul></ul><ul><ul><ul><li>Through what channels? </li></ul></ul></ul><ul><li>Inadequate IP regime: </li></ul><ul><ul><li>The distorted use of IP regime (TRIPS) to block innovation; </li></ul></ul><ul><ul><li>The dominance of MNCs in licensing and standards* (see cases below) </li></ul></ul>
  10. 11. <ul><li>MNCs dominance in standards setting </li></ul><ul><ul><li>About 50 global corporations determine what 250 ICT standard consortia do, and more importantly, how they do it. </li></ul></ul><ul><ul><li>The top ten leaders: IBM, Microsoft, Fujitsu, Intel, Hewlett Packard, Hitachi, Sun Microsystems, Nokia, Ericsson and Texas Instruments. </li></ul></ul><ul><ul><li>Of the 50 major players, 25 are from the US, 12 from the EU, 8 from Japan, 5 from emerging countries </li></ul></ul>
  11. 12. Governance reforms--some initial ideas <ul><li>World Science Foundation </li></ul><ul><ul><li>Funding for global challenges </li></ul></ul><ul><li>A more balanced IP regime </li></ul><ul><ul><li>Reform on TRIPs </li></ul></ul><ul><ul><li>Improved governance of standards </li></ul></ul><ul><li>Regional higher education system and knowledge institutions for developing countries? </li></ul><ul><li>Creative ways of using existing knowledge? </li></ul><ul><ul><li>Knowledge pool for green technology; </li></ul></ul><ul><ul><li>Accelerated diffusion of green technologies </li></ul></ul>
  12. 13. What could be done by China and UK?