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248 R. Walz<br />

Based on the pollution haven hypothesis <strong>and</strong> the environmental dumping<br />

mechanism it can be argued that there might be a disincentive for strong<br />

environmental policies in the NICs in order to attract pollution intensive industries<br />

(Copel<strong>and</strong> <strong>and</strong> Taylor 2004). However, there are also different incentives for NICs to<br />

push for sustainability technologies:<br />

& Firstly, environmental problems <strong>and</strong> related health issues are becoming major<br />

issues within NICs, <strong>and</strong> many <strong>of</strong> the sustainability technologies would help to<br />

improve this domestic environmental pressure.<br />

& Secondly, many analyzed sustainability technologies improve the infrastructure,<br />

e.g. in the energy, water or transportation sector, or address the growing dem<strong>and</strong><br />

for raw materials. Thus, they are also part <strong>of</strong> an economic modernization<br />

strategy.<br />

& Thirdly, moving towards environmental sustainability will create huge <strong>international</strong><br />

markets for sustainability technologies. It is estimated that the sustainability<br />

technologies will be a major market in the future, with average annual growth<br />

rates for technology dem<strong>and</strong> in the fields <strong>of</strong> energy supply, energy efficiency,<br />

transport, water technologies <strong>and</strong> material efficiency in the order <strong>of</strong> 5 to 8% per<br />

year. <strong>The</strong>se high growth rates will lead to an annual dem<strong>and</strong> for technologies in<br />

these five fields above 2,000 billion Euro in 2020 (Rol<strong>and</strong> Berger 2007; Ecorys<br />

et al. 2009). Thus, another incentive is that NICs engage in the development <strong>and</strong><br />

production <strong>of</strong> these technologies <strong>and</strong> compete with the countries <strong>of</strong> the North for<br />

lead roles in supplying the world market with sustainability technologies.<br />

<strong>The</strong> debate on technological catch-up <strong>and</strong> leapfrogging can be traced back some<br />

time. It gained prominence among the scholars developing an evolutionary theory <strong>of</strong><br />

trade (Soete 1985; Perez <strong>and</strong> Soete 1988; Dosi et al. 1990). Technological<br />

cooperation focuses on the knowledge base required by the technologies <strong>and</strong> on<br />

enabling competences in the countries. Since the end <strong>of</strong> the 1980’s, the concepts <strong>of</strong><br />

Social or Absorptive Capacity (Abramovitz 1986; Cohen <strong>and</strong> Levinthal 1990) <strong>and</strong><br />

technological capabilities (Lall 1992; Bell <strong>and</strong> Pavitt 1993) are widely known. <strong>The</strong><br />

results <strong>of</strong> the catching-up research in the last years (e.g. Fagerberg <strong>and</strong> Godinho<br />

2005; Nelson 2007; Malerba <strong>and</strong> Nelson 2008) <strong>and</strong> <strong>of</strong> empirical studies on<br />

developing capabilities especially in the context <strong>of</strong> the Asian countries (Lall 1998;<br />

Lee <strong>and</strong> Lim 2001; Lee 2005; Lee <strong>and</strong> Lim 2005; Rasiah 2008) have underlined the<br />

importance <strong>of</strong> absorptive capacity <strong>and</strong> competence building. Furthermore, there is<br />

increasing debate about the changing nature <strong>of</strong> technology transfer <strong>and</strong> cooperation<br />

with regard to learning <strong>and</strong> knowledge acquisition. One aspect to consider is the<br />

tendency that the build up <strong>of</strong> technological <strong>and</strong> production capabilities are becoming<br />

increasingly separated (Bell <strong>and</strong> Pavitt 1993). Another aspect relates to the effect <strong>of</strong><br />

globalization on the mechanisms for knowledge dissemination. Archibugi <strong>and</strong><br />

Pietrobelli (2003) stress the point that importing technology has per se little impact<br />

on learning, <strong>and</strong> call for policies to upgrade cooperation strategies towards<br />

technological partnering. Nelson (2007) highlights the changing legal environment<br />

<strong>and</strong> the fact that the scientific <strong>and</strong> technical communities have been moving much<br />

closer together. All these factors lead to the conclusion that indigenous competences<br />

in sustainability related science <strong>and</strong> technology fields are increasingly a prerequisite<br />

for the successful absorption <strong>of</strong> sustainability technologies in NICs.

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