Increasing the rate of climate technology transfer is a critical concern. The international community facilitates the development and deployment of climate technologies for the needs of the South in two primary ways: first, through the use of multilateral frameworks for technology transfer and, second, through in-country capacity building for research, development, and deployment in developing countries. However, scant attention is given to whether national-level frameworks in industrialized countries can support technology transfer. This issue may be of particular relevance to small and medium enterprises (SMEs) in developed countries, due to their relative lack of experience in international markets. The barriers that prevent SMEs from developing and exporting more technologies to the South are identified, by using Israel as a case study. Although Israel is an important global source of climate technology innovation, it currently does not engage much with the developing world. Four principle barriers to greater involvement of OECD SMEs in technology transfer for climate mitigation in developing countries are: (1) lack of knowledge of market needs in developing economies, (2) lack of financial mechanisms to support R&D, (3) lack of opportunities for partnership building, and (4) lack of support for demonstration sites in developing countries.
Policy relevance In addition to international interventions aimed at climate technology transfer to developing countries, national-level frameworks in industrialized countries can enable and encourage their companies. In particular, SMEs in developed countries are a source of innovation, but they often lack the experience, contacts, and resources to meaningfully engage in technology transfer to the South. Industrialized countries could contribute to international technology transfer by helping their domestic SMEs overcome market information barriers in developing countries through a series of policies and activities: funding R&D aimed at technology transfer, insuring risk, providing matchmaking services to overcome difficulties in identifying private sector partners in the South, and funding demonstration sites. If such difficulties can be overcome, then benefits arise for the industrialized country through a more internationally active private sector, and for countries in the South through the increased transfer of appropriate innovations.