Criterion 7. Legal, Institutional, and Economic Framework for Forest Conservation and Sustainable Management National Report on Sustainable Forests—2010 Indicator 7.62. Capacity To Conduct and Apply Research and Development Aimed at Improving Forest Management and Delivery of Forest Goods and Services and New Technologies and the Capacity To Assess the Socioeconomic Consequences Associated With the Introduction of New Technologies What is the indicator and why is it important? Indicator 7.62 is a measure of the capacity to assess the effects of new technologies in a broadly defined forest sector on the socioeconomic structure in which the technologies are applied (e.g., employment, industrial output, valued added, or productivity in the forest sector). New technology drives economic efficiency but has potential social and environmental consequences that should also be considered. Private enterprise interests drive much of the implementation of new technologies based on the research performed, as described in Indicator 7.60. Implementation occurs through voluntary adoption of promising technologies, supported by a variety of government incentives, subsidies, and taxes. Most of this technology adoption is market driven, based on public research that is disseminated through extension, education, scientific publications, conferences, and technical meetings. What has changed since 2003? What does the indicator show? Development of new technologies for sustainable forest management is largely a research and planning exercise, but is not mandatory or prescriptive in most cases. Federal research was classed as prescriptive earlier, so it is included here for consistency. But the brunt of technology development and assessment is derived from informational, educational, fiscal, or economic policy mechanisms. Little direct evaluation of the socioeconomic consequences of the introduction of new technologies exists, although some socioeconomic studies and rural development analyses include this as a component of their analyses. No notable changes have occurred since 2003. Table 62-1. Policy and Governance Classification. Mechanism Nondiscretionary/mandatorya Informational/educationalb Discretionary/voluntaryc Fiscal/economicd Market basede Scale: National (N), Regional (R), State (S), Local (L) N N, S N N N Approach Prescriptive Process or Systems Based Performance or Outcome Based Private Enterprise L R, A R, A S I, S, T M Laws (L), Regulations or Rules (R), International Agreements (I), Government Ownership or Production (G). Education (E), Technical Assistance (T), Research (R), Protection (P), Analysis and Planning (A). c Best Management Practices (B), Self-regulation (S). d Incentives (I), Subsidies (S), Taxes (T), Payments for Environmental Service (P). e Free enterprise, private market allocation of forest resources (M), or market based instruments and payments, including forest certification (C) wetland banks (W), capand-trade (T), conservation easement or transfer of development rights (E). a b Last Updated June 2011 1