4.4 Technology Development Banks

It has been suggested that instead of creating a new institution, the developing countries may change some of their existing development financial institutions into a venture-capital company, or may require them to carry out venture capital business as well, in addition to their conventional business. In this respect, the concept of a Technology Development Bank may also be introduced. The major role of this bank would be to provide financial support for:

• all aspects of the introduction, improvement and adaptation of advanced technology, particularly semi-developed technology from abroad, or indigenization of such technology to suit local conditions,

• development of new products and processes,

• support of plant engineering services,

• increasing the availability of risk and venture-capital for development of indigenous technology and upgrading traditional technology,

• financing R&D laboratories and technological institutions, and

• providing subsidies for the commercialization of R&D.

As considerable development financing is indispensable for commercialization of technologies, there is vital need to increase its magnitude and to ensure that it is greater than that set aside for technology generation.