Comparing North-South technology transfer and South-South technology transfer: The technology transfer impact of Ethiopian Wind Farms

The paper compares HydroChina's involvement in Adama Wind Farm in Ethiopia as a case of South-South technology transfer to that of Vergnet, a French firm involved in the construction and financing of Ashegoda Wind Farm, as a case of North-South technology transfer. The impact of technology transfer is evaluated along four dimensions: capital goods and equipment, direct skill transfer, indirect skill transfer, and knowledge and expertise. In recent years, rise of south-south technology transfer led by Chinese-financed overseas renewable energy projects in developing countries has rekindled debate on motivations and impacts of China's increasing engagements. However, the literature on impact of technology transfer in renewable energy is scarce and non-comparative in nature. This paper aims to fill in the gap. Through interviews with key stakeholders and detailed analysis of the negotiation and construction processes in both projects, the research shows although HydroChina shared a higher level of knowledge and expertise to local engineers and university scholars during the construction phase, Vergnet formed stronger long-term skill transfer linkages with local university students and employed a larger share of local workers than HydroChina. It is crucial to note the research presented here shows that host government, rather than donor country, has considerable capacity and can play a vital role in negotiating and maximizing technology transfer. In fact, the host government's expectations and demands contributed to the variations in technology transfer patterns. The paper concludes with a discussion of potential opportunities and challenges, and policy recommendations to facilitate international technology transfer.