To reduce problems of asymmetric information, international cooperation could seek to
create a conduit for knowledge about successful technology-acquisition programs that
have been undertaken by national and sub-national governments in the past.26 Many
developing countries have little knowledge about the structure of international ITT
contracts: What are reasonable royalty rates? What sort of conditions have sellers of
technology been willing to accept? What types of contract clauses have proved helpful in
encouraging local technological development? Answers to such important questions are
available but their dissemination requires concerted efforts on the part of the private as
well as the public sector of developed countries. Privacy concerns might be raised as an
issue but these cannot be a major obstacle: past licensing contracts that have already
expired can hardly raise serious privacy concerns. Countries that underwent rapid
technological development can teach developing countries important lessons if they are
willing and able to tap the knowledge available in both public and private sectors.
Sharing of country experiences that does not utilize the information available from the
private sector can only be of limited use.
As mentioned, more emphasis on information exchange and mutual (multilateral)
monitoring would also be beneficial. This should focus on the effects of applied policies
in achieving objectives. Rather than regulate what countries may or may not do to
encourage ITT and innovation through substantive policy harmonization, the aim would