Technology Diplomacy
-historical perspective and approaches
DST sponsored training programme on
Technology Diplomacy
Deepak Bhatnagar
Head, Centre for International Trade in Technology
headcitt@iift.ac.in
headcitt@gmail.com
Technology Diplomacy – its ‘ raison d’ etre’
“ India’s well wishers have long been puzzled that a
literate country that has done all the right things in half a
century of independence, creating a network of vigorous
public research laboratories, recruiting scientists and
engineers to them and driving the standards of
engineering education to the highest level, should have
reaped so little benefit from its investments.
Now, the tide has begun to turn, with India’s software
industry making its mark in international markets. India,
the authentic land of the tiger, looks like being the next
Asian Tiger’
- Sir John Maddox, Editor Emeritus, Nature
Who was the first ‘Technology Diplomat’?
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King Porus- gifted 100 talens of steel to Alexander the Great in 326BC(unwittingly using ‘diplomacy’ to avoid being hanged or becoming a prisonerof-war!
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Craftsmen who made ‘wootz’ steel - gave it to traders who went to Persia the steel was used to make the famous Damascus swords- were also, in a
way, part of these initial forays in ‘technology diplomacy’ by India’s skilled
craftsmen.
(‘Wootz’ derived from the Kannada word ‘UKKU’ meaning steel)
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British Royal Society made a detailed examination of Wootz Steel in 1790:
their report says….“the steel of India is decidedly the best I have yet met
with!”
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“Should Tatas make steel rails to British specifications, I would undertake to
eat every pound of it” - Sir Fredrick Upcott, Chief Commissioner of Indian
Railways
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“If Upcott had carried out this undertaking he would have had some slight
indigestion” (comment by Dorabjee Tata when the rails were sent to UK)
Modern day ‘Technology Diplomats’ from India
• Millions of Indians, who have used their innovative genes
and technological prowess to develop new products and
services , to create ‘wealth’ – not just confined to the
borders of our country , but across the world!
• Sabeer Bhatia (Hotmail )
• Vinod Dham ( Pentium chip )
• Kanwal Rekhi, Vinod Khosla, Rajat Gupta(Mc Kenzie-founder of ISB)
• Narinder Singh Kampany (who developed Fibre Optics)
• Dr Sanjay Gupta whose face is so familiar on CNN talking on Health issues and now with
Obama’s administration
• Indeed, more than 25% of the doctors in USA and UK are of Indian origin.
– Scientific Diplomacy – Nobel Prize winners of Indian origin
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CV Raman,
Hargobind Khurana
S Chandrashekhar
Venkat Raman
Flashback - the beginnings of Science in India
‘food-gathering’ to ‘food-production’
• Indus valley Civilization - intermingling of people from
different countries - several new technological features
• Foreign conquests also brought in technologies for town
planning, drainage systems, tiled flooring, solid wheeled
carts , copper-bronze craftsmanship etc.
• Intermingling of races-first endeavors of sharing skills from
different cultures
• India -‘Soft’ superpower with skills in computers - ‘binary
system ‘ which is the very basis of Computer programs.
India: A technology focused transition
--- from Dependence to Independence to Inter- dependence!!
Dependence:
-200 years of foreign rule upto 1947
-India was used as a base for raw material exploitation
-Traditional Industrial activities at Cottage level
Independence:
- S&T as a critical input for economic development of the country
-National Policy on Socialistic pattern of growth
-Centralized Planning and State Controlled economy
-Thrust on Self reliance and Import substitution
Inter-dependence:
-New Industrial Policy of 1991
-Globalization of Trade and Economy driven by market forces
-Focus on ‘hi-tech’ initiatives to yield ‘value-added’ products and services
-Technology as a prime vehicle for India’s economic growth and sustenance
Advent of globalization- World is increasingly becoming inter-dependent, not just in the supply of raw
materials and machinery, but more so in terms of technology and knowledge sharing and transfer.
Science, technology and innovation is going to determine the economic and political power of the
nations.
Need for technology diplomacy
• Marked rise in the interest in the cultural heritage
of India
• Ready market it offers for world business
• Projection of India’s technological capabilities has
been pitifully weak
• Trends in key S&T fields is an essential prerequisite to effective international negotiations
International Negotiations- two key features
• Scientific knowledge becoming increasingly specialized demands greater expert input into international
negotiations.
• The application of S&T to development requires the ability
to integrate the divergent disciplines to solve specific
problems
International diplomacy now demands that government
negotiators deal with both specialization and integration.
“…the provision of science and technology advice to multilateral
negotiations and the implementation of the result of such negotiations
at the national level. It therefore covers activities at both international
level and national level pursuant to international commitments.”
Collaborative Research- across national boundaries
• Most challenging & rewarding ‘technology
diplomacy’ - carry out joint research across
national boundaries
• Classic example - Nobel Prize winning joint work
of teams from India & USA, UN InterGovernmental Panel on Climate Change - Dr RK
Pachauri, TERI, India and Al Gore, USA
• Rich-world companies are doing more R&D in
emerging markets e.g. Fortune 500 companies
now have 98 R&D facilities in China and 63 in
India
In a Globalised world…
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Diplomacy: from political to economic to technological
Major technological issues – have a diplomatic dimension (and vice-versa!)
S&T Cooperation is a ‘live’ area of international diplomacy
India has been a major user of this ‘weapon’ in the ‘arsenal of linkage building’
Technological prowess-increased ‘respect’ and ‘Image’ in the comity of Nations. (eg. Nuclear tests,
Satellites, Missiles)
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India-US Nuclear deal
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Good way to increase our ‘maneuverability’
Way out of MTCR and ‘Sanctions’ (after nuclear test 11 May 1998)
Iran and North Korea: always the cloud of hostility and suspicion.
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S&T cooperation- Key driver of diplomatic relations
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Science Counsellors in US, UK, Germany , France, Japan.
Implementing bilateral programme
Tracking developments related to technology.
“Look East” policy: ASEAN-India S&T cooperation
Russia: Steel Plants to Cryogenic engines (vehemently opposed by USA)
US – Leading S&T partner
Germany- Second largest (After 1990 when it displaced Soviet Union)
Links CSIR with Frauenhofer society ,Steinbeis Foundation- bridge between Industry and R&D
institutions (CII Links)
Technology Diplomacy in Europe:
Realised its importance as early as 1952
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CERN (European Council for Nuclear Energy) set up by 11 European Govts in
Geneva
Europe
- devastated by World War II
- Scientists migrating to US
- Europe pooled resources based on their GDP and set up CERN.
CERN gave birth to the world wide web
Forefront of Nuclear Accelerator technology: Large Hadron Collider- expected to answer
fundamental problems of nature
‘Computer Grid’ technology is taking birth – connecting all computers in major labs of
the world.
ITER (International Thermonuclear Experimental Reactor)
From Plasma physics to electricity producing nuclear fusion power plants (the principle
on which sun produces energy)
Answer to long term energy needs
India is a partner (IPR, Gandhinagar)
ITER is expected to produce 500 MW of power and scheduled to be switched on in
2018.
Main aim of ITER is to produce 5 to 10 times more energy then the amount consumed.
India-EU collaboration - ‘India Gate Project’
• India-EU collaboration functional from 2001 onwards
• Science-Technology-Innovation more explicitly by 2012
• ‘European Innovation Integration’ corresponds to the Govt. of India’s
‘2010-2020 as the Decade of Innovation’
• INDIA GATE is a project funded by the 7th Framework Programme of
the European Commission that aims to improve the scientific and
technological cooperation between India and the EU.
• The Centre for International Trade in Technology (CITT) at the Indian
Institute of Foreign Trade (IIFT) is one of the three project partners
from India (others are CSIR & EIRC)
• European partners are: Europa Media, Hungary; APRE, Italy; FORTH,
Greece; BEA, Belgium
Objectives: The primary objective of INDIA GATE is to boost the
Scientific and Technological cooperation between India and the
European Union by creating a single space for discovering
information about available funding opportunities for EU institutions
and individuals in India.
Role of S&T in International Diplomacy and Trade
• Emergent forms of international diplomacy are developing
to deal with a number of emerging issues where science
and technology play a central role eg. Infectious diseases, environmental
degradation , electronic crimes, weapons of mass destruction and the impacts and
applications of new and emerging technologies –particularly bio-technology.
• Substantial benefits can also be derived from linking S&T
diplomacy with trade, enterprise development and
investment policies.
• Science and Technology-related issues are often at the
root of many trade controversies/disputes. Successful
trade negotiations therefore demand a greater
understanding by trade diplomats and policy-makers of
the scientific underpinnings of trade issues.
Science and Technology Diplomacy Initiative
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Established at UNCTAD
- following recommendations of the United Nations Commission on Science
and Technology for Development (UNCSTD)
Implemented by UNCTAD in collaboration with the Science, Technology and
Innovation Program of Harvard University's Kennedy School of Government.
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The main objective of the Science and Technology Diplomacy Initiative is to
mobilize scientific and technological expertise to enable developing country
diplomats and representatives to participate fully and to make informed
decisions on emerging issues, where science and technology play an
important role, particularly in the aftermath of the Doha WTO Ministerial
meeting.
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To provide training and workshops for diplomats, scientists and policy-makers
to assist them in international negotiations, particularly those that take place
at the TRIPS Council, with respect to the Convention on Biological Diversity,
biotechnology, and transfer of technology.
Succinct technology diplomacy briefs on emerging science and technology
issues
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International S&T Cooperation – a new paradigm in diplomacy
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Broadly classified into three categories-based on the mode of funding &
relative scientific & technical strengths of the collaborating partners.
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The first two categories - whether India is a beneficiary or a benefactor. India
receives grants - advanced countries support science.
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As a donor, India funds R&D in another country as a gesture of goodwill and
also provides consultancy services.
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Responsibility of negotiating S&T cooperation agreements and coordinating
programmes rests with the DST.
Department of Biotechnology - International Center for Genetic engineering
and biotechnology (ICGEB).
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International S&T Cooperation agreements have been signed with around 80
countries as well as with regional groupings like ASEAN, BIMSTEC, SAARC
etc
Contd.
International S&T Cooperation – a new paradigm in diplomacy
Few notable programmes:
• Indo-US S&T Forum and the DST-NSF arrangements
• An integrated long term program of cooperation with Russia (ILTP)
• Indo-German experience started in the ‘60s with atomic energy and
space and has now extended in other areas, including academic
exchanges through DAAD, Humboldt, Max –Planck-Gesselschaft and
others.
• Indo-French Centre for the promotion of Advanced research
(CEFIPRA)
• Indo-British exchanges –seeds were sown in the academic institutions
• DST-Japan society for promotion of science(JSPS) and Science
&Technology Agency (STA)
• ASEAN –India S&T forum
When Indian scientists are felicitated for their achievements and contributions
abroad, one has a feeling that they are truly the ‘brand ambassadors ‘ of our
country.
S&T Cooperation in relationships:
• Case of Mauritius
- Large population of Indian origin
- Two major scientific projects
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First
Satellite tracking station operated by ISRO
The only full control station outside India
Mauritius has shown a rare degree of friendship in making available
this research base
• Second
- Vast amount of land made available for setting up a radio-astronomy
facility that is unique in Southern Hemishphere
- Basic research into the origin of Universe
- Mauritius has an experiment in basic research: fully funded by India.
Climate Change Issues….
• All about reducing carbon foot print by better technology
• Developed countries: useful ‘stick’ to force developing
nations ‘buy their’ technology
• Reducing CO2 emissions thru’ better technologies helps in
sale of ‘carbon credits’
• Strategic tie-ups on Energy:
- Indo-US agreement on Hydrogen Energy Technology
• Vinod Khosla new Green Venture - has employed Tony
Blair for ‘diplomatic lobbying’ to promote environment
friendly technologies.
Technology Bazaar …
• Shift in joint R&D projects from mere basic research to involve
industry in a partnership mode.
• Global giants like GE, Du Pont, HP, Hughes, Motorola,
SmithKline Beecham, Unilever and others have set up alliances
with Indian companies.
• CSIR labs are signing contract research agreements –with
Indian as well as foreign clients. For eg, Reliance Industries , in
collaboration with NCL is testing a novel non-polluting process,
Du Pont has tied up with IIT Chennai for development and
screening of new agro chemicals.
• Gugulipid –a cholesterol lowering drug was developed by the
CDRI and the technology was passed on to Cipla and a French
company. Similar initiatives have been taken by other scientific
departments like Atomic Energy, Space, Electronics , Biotechnology to develop new products which have significant
export potential.
Conclusion: North-South Philosophical divide
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“Knowledge flows from north to south and
wisdom flows from south to north”- Fredrico Mayor -DG of UNESCO
Knowledge may flow from north to south but ‘usable
knowledge’ does not flow that easily from north to south , since
usable knowledge has the potential to create wealth. No
country or no corporation gives a competitive advantage to
another, excepting at a price. India itself has realized this in the
post liberalization era.
• Indian scientists have always been front runners in the pursuit
of science.
“ It is an inherent obligation of a great country like India, with its
traditions of scholarship and original thinking and its great
cultural heritage to participate fully in the march of science,
which is probably mankind’s greatest enterprise today”
- Jawaharlal Nehru
Biotechnology
- Sectoral Perspective
Biotechnology
- aptly described as the “technology of hope”
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For its promise to deliver food security, life-saving drugs, alternate energy and
environmental sustainability.
• Over 100 national research laboratories employing thousands of scientists.
• About 3,00,000 postgraduates and 1,500 PhDs qualify in biosciences and engineering
each year.
• According to reports, outside of the US, India ranks the highest with 61 USFDAapproved plants and in excess of 200 GMP certified pharmaceutical manufacturing
facilities.
• Indian Government's national biotechnology development strategy is a comprehensive
road map for this emerging sector.
• Industry size: $5 billion with bio-pharma driving the growth trajectory.
• It offers an attractive cost arbitrage in research & development at roughly a third of that
in the western hemisphere.
• Key enablers include a large, qualified English-speaking workforce, a network of
reputed research laboratories and state-of-the –art pharmaceutical labs and
manufacturing facilities.
• Drug discovery and development, fierce competition and pricing pressure are all
spurring western pharma companies to have an India strategy.
• Large number of block-buster drugs are also set to go off-patent.
• The industry is collaborating with global giants in clinical trials, discovery and
development research, and manufacturing.
Huge opportunity for growth only if innovation becomes part of the business ethic
Traditional Medicine: India as a ‘Window for the world’
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Indian system of medicine AYUSH
Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homeopathy
25% of modern medicines derived from plants
65% of population in rural Indus use Ayurveda and medicinal plants
World market for natural products US$62 Billion
Double digit growth
70% of population in developed countries have tried and regularly depend on natural
products for health care.
India : ideally placed for lead in international markets
Wide range of expertise honed on centuries old traditions
Backed by State-of-the art S&T capabilities in Biotechnology
Huge availability of Natural ingredients:
15 agro-climatic zones
15000 medicinal plants
(7000 plants used in Ayurveda, 700 in Unani medicine, 600 in Siddha medicine & 30 in
modern medicine)
Modern technologies
Standardization of herbal drugs
Green pharmacy concepts.
IIFT carrying out a study on India’s Export potential of AYUSH products in SAARC &
ASEAAN countries.
Table1: Export of AYUSH products in ASEAN countries (US $ million)
Countries
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
CAGR
Malaysia
0.03
0.00
0.00
0.11
0.18
0.32
0.67
1.12
67.72
Myanmar
(Burma)
0.02
0.02
0.03
0.05
0.37
0.31
0.18
0.42
54.49
Philippines
0.38
0.26
0.29
0.48
0.77
1.15
1.76
1.81
24.98
Singapore
0.13
0.19
0.30
0.40
0.30
0.40
0.44
0.49
20.87
Thailand
0.13
0.13
0.09
0.37
0.07
0.11
0.20
0.22
7.81
Viet Nam
2.93
2.59
0.17
0.06
0.88
0.62
3.48
1.31
-10.86
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Indonesia
0.00
0.02
0.04
Source: INDIA-TRADE, CMIE
0.00
0.02
0.01
0.03
0.00
--
Table2: Export of AYUSH products in SAARC countries (US $ million)
Countries
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
CAGR
Pakistan
0.96
1.35
0.94
2.03
2.69
6.16
7.77
10.43
40.61
Banglades
h
0.42
1.12
0.55
1.32
1.24
1.21
0.74
1.58
20.84
Sri Lanka
0.08
0.06
0.09
0.27
0.24
0.27
0.24
0.30
20.78
Maldives
0.00
0.00
0.02
0.00
0.01
0.00
0.00
0.00
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Nepal
0.00
0.01
0.01
0.15
0.17
0.10
0.35
0.24
Source: INDIA-TRADE, CMIE
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Case Study: Japanese buying Ranbaxy!
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4 decades - home based enterprise to a big MNC
Acquired many domestic and foreign companies
Several joint ventures with foreign players
2008 – sold 63.92% stake for $ 4.6 Billion to Daiichi Sankyo of Japan
CEO & MD Malvinder Singh justifies…
“this will put us on a new and much stronger platform to harness our capabilities in
drug development, manufacturing and global reach”
Strategic Transactions: bringing together generic and innovative company (no. 1 in
Generic – bigger than Teva)
Strong focus on Internationalization
99% of Pharma market is outside India.
Research based company – to discover its own proprietary drugs to leverage IPR
Series of overseas acquisitions
- Access to technology (alliances with Big Pharma brought certainty of US markets)
- Foothold on the unbranded generics business
Ranbaxy and Glaxo Smithkline (GSK) – global alliance for drug discovery
March 2006: 4 global acquisitons in 10 days
True ‘Technology Diplomat’ with footprint in 49 countries with an intellectual pool of
12,000 multi cultural work force from 51 nationalities.
Low Cost Insulin Pump
- Under development at Amrita School of biotechnology with support from TIFAC, DST.
- Partnership with Bio-Con, a leading
manufacturer of human re-combinant
insulin.
- Price range in the 1000s. Imported pump
costs Rs. 1.75 lakhs.
- Globally competitive product.
- A boon for diabetics, numbers increasing at
alarming rate.
Development Chain
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Mind to Market
Thoughts to things
Concept to commerce
Bench to bedside
FUNGISOMETM
Pride Product of PublicPrivate Partnership
FUNGISOMETM development at Delhi University & KEM
Hospital, Mumbai was supported by DBT, MoST, GoI.
Technology transferred to Lifecare Innovations Through
National Research Development Corporation.
R&D at Lifecare Innovations led to the commercialization
of FUNGISOMETM which was supported by DSIR, MoST,
GoI under the auspices of PATSER (Program Aimed at
Techonological Self Reliance).
“One need not be ashamed to express
ignorance. It is hiding of one’s
ignorance that one should be ashamed
of.”
These were the words of Prof.B.K. Bachhawat.
August 16, 1925- September 23, 1996
Indian Industry not ready to absorb the
technology arrived before time.
Turbulent time for J.N. Verma
After one failure of commercialization
efforts, NRDC facilitated foundation of
Lifecare Innovations
Liposomal Amphotericin :
Produced in the lab
LAMP LRC 1
Bench
Liposomal Amphotericin :
Produced at Lifecare
TM
FUNGISOME
to
Bedside
FUNGISOMETMBrand
FUNGISOMETM1
AmBisome2,3
Amphocil/
Amphotech5
Ampholip/
Abelcet3,4
Complete Partial Successful
Response Response Response
(%)
(%)
(%)
Nephrotoxicity
incidence7
(%)
Minimum
Daily
Treatment
Cost (Rs.)
73.6
17.5
91.1
-1*
5,900
58.0
19.0
77.0
10-20
30,000
42.0
11.0
35.0
46.0
282 out of 473 patients enrolled in different
groups of fungal infections, only ‘some’
successfully treated
30,000
25-40
24,100
42-63
17,325
33.3
Conventional
Amphotericin B6
31.6
17,325
34-40
300
PATSER Providing Strength
• Special issue of Journal of
Postgraduate Medicine
onSystemic Fungal Infections
and development of Indian
Liposomal Amphotericin B
The special issue of the Journal highlighted matchless safety,
therapeutic success and economy of treatment