THE COUNCIL ,
HAVING REGARD to Article 5 b) of the Convention on the Organisation for Economic Co-operation and Development of 14 December 1960;
HAVING REGARD to the OECD Guidelines for Multinational Enterprises [ OECD/LEGAL/0144 ], the Recommendation of the Council concerning Guidelines Governing the Protection of Privacy and Transborder Flows of Personal Data [ OECD/LEGAL/0188 ], the Recommendation of the Council on International Co-operation in Science and Technology [ OECD/LEGAL/0237 ], the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions [ OECD/LEGAL/0293 ], the Declaration on International Science and Technology Co-operation for Sustainable Development [ OECD/LEGAL0320 ], the Recommendation of the Council concerning Access to Data from Public Research Funding [ OECD/LEGAL/0347 ], the Recommendation of the Council for Enhanced Access and More Effective Use of Public Sector Information [ OECD/LEGAL/0362 ], the Recommendation of the Council on Digital Security Risk Management for Economic and Social Prosperity [ OECD/LEGAL/0415 ], the Recommendation of the Council on Health Data Governance [ OECD/LEGAL/0433 ], the Recommendation of the Council on the Policy Framework for Investment [ OECD/LEGAL/0412 ], the Recommendation of the Council on the OECD Due Diligence Guidance for Responsible Business Conduct [ OECD/LEGAL/0443 ], the Recommendation of the Council on Artificial Intelligence [ OECD/LEGAL/0449 ], the Recommendation of the Council concerning Effective Action against Hard Core Cartels [ OECD/LEGAL/0452 ] the Recommendation of the Council on Responsible Innovation in Neurotechnology [ OECD/LEGAL/0457 ], and the Recommendation of the Council on Enhancing Access to and Sharing of Data [ OECD/LEGAL/0463 ];
HAVING REGARD to the Daejeon Declaration on Science, Technology and Innovation Policies for the Global and Digital Age [ OECD/LEGAL/0416 ] which calls for greater international co-operation to address global challenges and strengthening the innovation capacities of developing countries;
HAVING REGARD to the OECD’s Frascati Manual on Research and Experimental Development (R&D) and the Oslo Manual on Innovation which, together, set international statistical standards for the measurement of scientific, technological and innovation activities;
HAVING REGARD to the work of the World Trade Organization on intellectual property, in particular the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS);
CONSIDERING that innovation is the driving force behind improved productivity and is therefore central not only to economic growth and long-run job creation but also to social and environmental objectives;
CONSIDERING that, international technology co-operation depends on transparent, non-market distorting rules, and a level playing field that promote both co-operation and competition among businesses;
CONSIDERING that, while businesses have the primary responsibility for maintaining a competitive technology base and exploiting it to commercial advantage, the development of some potentially high payoff technologies is a high risk, and costly venture, which can exceed the capacity and capabilities of individual business firms or even countries;
CONSIDERING that R&D, technology development and innovation increasingly take place within global value chains involving multinational enterprises (MNEs) and small and medium-sized enterprises (SMEs);
CONSIDERING that there are various types of data that bear upon or add economic value to technology development and that privacy and personal data protection are critical to facilitate cross-border data flows that underpin the effectiveness and efficiency of technology co-operation;
CONSIDERING that the public benefits of key technology developments, such as generic technologies that are the basis of new industries, accrue much more broadly than to the business firms that developed them, and as a consequence, business firms are often reluctant to invest in such technologies because they cannot reap sufficient benefits that result;
CONSIDERING that it is in the interests of national governments, to play an active role as a catalyst and facilitator to encourage businesses to make longer-term investments in technological innovation, and engage in mutually-beneficial international technology co-operation to overcome the barriers identified above;
CONSIDERING that international technology co-operation with and among businesses can be very different in developing countries and may require a differentiated approach such as capacity building of the legal and regulatory environment for businesses and entrepreneurs and IPRs protection and enforcement for example;
On the proposal of the Committee for Scientific and Technological Policy:
I. AGREES that the purpose of this Recommendation is to provide guidance on how to facilitate bilateral and multilateral international technology co-operation, with and among businesses in order to bring about complementary and collaborative private sector investments in the development and diffusion of technologies that will provide the basis for economic growth. In that respect, international technology co-operation:
● covers the invention of technologies (including processes) and their commercialisation, the continual improvement of technologies, and the diffusion of technologies throughout industry and society;
● mainly occurs among businesses themselves but it also can involve co-operation with governments, public research organisations, universities and other entities that form part of innovation eco-systems (e.g. economic development agencies, start-ups and spin-offs, science and industrial parks, standard-setting bodies, trade unions) as well as civil society actors;
● can include international technology transfer, generally in the form of licensing of intellectual property rights, trade in intermediate goods, technology licenses or foreign direct investment.
CONDITIONS FOR EFFECTIVE INTERNATIONAL TECHNOLOGY CO-OPERATION WITH AND AMONG BUSINESSES
II. RECOMMENDS that Members and non-Members having adhered to this Recommendation (hereafter “Adherents”) set up the following conditions for an effective international technology cooperation with and among businesses:
1. Minimise restrictive measures to financial, trade, and cross-border data flows so as to help maximise the effectiveness of private sector and related public sector tangible and intangible investments while respecting existing regulations and safeguards;
2. Maintain and develop an effective intellectual property rights protection and enforcement regime that protects innovators in the physical and digital world whilst enabling open innovation and technology diffusion through the lawful use of exclusive and non-exclusive licenses. IPR regimes should ensure that businesses, when granting licenses for the use of intellectual property rights or when otherwise transferring technology, do so on reasonable terms and conditions and in a manner that contribute to the long term sustainable development prospects of the host country. The use and enforceability of non-compete clauses in employment contracts should be on reasonable terms so as not to hamper innovation, the creation of new companies, or the diffusion of knowledge.
3. Facilitate compatibility and market openness while promoting innovation, including through relevant international standards;
4. Support collaboration between businesses, universities, public research and civil society in the development of international governance frameworks for the use and application of new and emerging technologies, taking into account the effective risk management, appropriate regulatory environments and ethical considerations of stakeholders, including trade unions;
5. Support institutional learning and capacity building, including with developing countries, so as to enable a level playing field with regard to regulations on commercial data that underpin technology co-operation with and among businesses such as rules on privacy and personal data protection and data sharing and access;
6. Conclude formal agreements with other governments only when these are essential to achieving desired collaboration. In specific cases, international technology co-operation agreements with other governments may be needed to implement bilateral and multilateral responses to global challenges, including climate-related hazards and risks, cybersecurity risks, pandemics and emergency preparedness and response.
ENABLING TECHNOLOGY CO-OPERATION BETWEEN ADHERENTS AND BUSINESSES
III. RECOMMENDS that Adherents promote the involvement of businesses when structuring and implementing technology co-operation between each other, by encouraging the widest feasible participation of businesses in international technology co-operation projects, in recognition of their strengths, and potential to add value to bilateral and multilateral projects as it can bring about a wider application of the resulting technologies that can help solve global challenges and contribute to national competitiveness. To that effect, Adherents should:
1. Ensure that the partners in the co-operation, such as businesses and other relevant stakeholders, should come to an understanding on the protection of intellectual property rights; on scientific research exemptions; privacy and personal data protection; fair to equitable contributions to projects; and the dissemination of information and access to and use of the results of the technology co-operation;
2. Encourage multi-stakeholder co-operation on setting common technology standards for technologies identified through international co-operation so as to enable “market pull” for the uptake and diffusion of technologies, including green technologies, that can generate broad societal, economic and environmental benefits;
3. Make sure that the terms and conditions of the projects are clarified either in an agreement between the partners or in an arrangement for co-operation, that would enable the partners to adjust the programme, project design, participation, or membership to meet changing needs and circumstances while addressing, in terms of technical topics, intellectual property rights, data sharing and access, agreements and consortium structure.
PROMOTING INTERNATIONAL TECHNOLOGY CO-OPERATION BETWEEN BUSINESSES, UNIVERSITIES AND PUBLIC RESEARCH ORGANISATIONS
IV. RECOMMENDS that Adherents promote international technology co-operation between business, universities, and public research organisations by:
1. Encouraging the businesses to take an active role, in co-operation with universities and public research organisations in establishing goals, planning, structuring and managing co-operation projects, so as, among other things, to ensure that businesses can translate science and technology into successful innovations whilst recognising the need for safeguards on academic freedom and research and scientific autonomy;
2. Enhancing global collaborative R&D networks and platforms, including through dedicated public and private funding, that bring together businesses, universities, public research organisations and civil society in the development, deployment and delivery of technologies to address global challenges consistent with national and international rules on public procurement, product and market regulations, and good manufacturing practices;
3. Enabling the participation of start-ups, micro-enterprises and SMEs in international technology co-operation projects and consortia involving businesses, universities and public research organisations and facilitating their access to public research infrastructures and the innovative technologies resulting from international co-operation;
4. Facilitating participation of students and researchers in international technology co-operation projects involving business and public research organisations whilst ensuring rules on public research funding contribute to reduce potential conflicts of interest.
PREVENTING AND MITIGATING RISKS RELATED TO INTERNATIONAL TECHNOLOGY CO-OPERATION INVOLVING BUSINESSES
V. RECOMMENDS Adherents to support effective international technology co-operation, in particular by:
1. Supporting compliance of international technology co-operation with state aid rules, competition law, foreign direct investment (FDI) rules, trade, and export control regulations;
2. Minimising barriers for effective and efficient technology co-operation, wherever practicable, such as through sharing and access to data from public research funding, implementation of relevant global standards, and accelerating the digital transformation;
3. Taking appropriate measures to prevent and mitigate risks in international technology co-operation such as data leakage or theft, forced technology transfer, exploitative extraction of research resources, misuse of dual-use technologies.
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VI. ENCOURAGES businesses to disseminate and follow this Recommendation in their approach to international technology co-operation.
VII. INVITES the Secretary-General and Adherents to disseminate this Recommendation.
VIII. INVITES non-Adherents to take due account of and adhere to this Recommendation.
IX. INSTRUCTS the Committee for Scientific and Technological Policy to:
a) Serve as a forum for:
i. exchanging information on international technology co-operation involving businesses with respect to the implementation of the Recommendation through a multi-stakeholder dialogue;
ii. monitoring the evolution, drivers and impacts of international technology co-operation with and among businesses using and developing, whenever possible, indicators, statistics, and complementary data resources;
iii. conducting further work on policies to facilitate international technology co-operation among business enterprises and between them and public research organisations;
iv. developing an implementation toolkit with guidance and good practices to help Adherents implement the Recommendation;
b) Conduct voluntary reviews with respect to the implementation of this Recommendation;
c) Continue work in this policy area in order to determine what further actions might be necessary to remove barriers inhibiting mutually-beneficial international technology co-operation involving business enterprises; and
d) Report to the Council on the implementation, dissemination, and continued relevance of this Recommendation no later than five years following its adoption and at least every ten years thereafter.