Abstract:
Technology transfer from foreign investors to National firms through the instrumentality of FDI
requires Comprehensive investment laws and regulations that encourage technology transfer
between foreign investors and national firms. Investment laws shall provide strategies that
promote technology transfer. Particularly, it shall affirm the protection against infringement of
foreign investor's IPRs, which is key in promoting technology transfer to domestic firms.
Investment laws shall incorporate comprehensive incentives targeting technology transfer and
provide mechanisms for monitoring and evaluating technology transfer activities. Employing the
doctrinal research methodology, the thesis has re-assessed the efficacy of Ethiopian investment
laws in enabling technology transfer from foreign investors to national firms. After an in-depth
analysis of Ethiopia's BITs, investment proclamations, and regulations, along with experience
from other countries, the thesis finds that these legal frameworks lack comprehensiveness in
providing adequate incentives that target technology transfer and lack clear cooperation
mechanisms for easier monitoring and evaluation of technology transfer. Investment proclamation
is silent about investment-related intellectual property rights. In addition, they do not adequately
establish effective mechanisms to promote technology transfer between foreign investors and local
firms. Accordingly, the study recommends the amendment of technology transfer-related
provisions under the investment proclamation to clearly and comprehensively establish incentives
that target technology transfer activity, clearly stipulate a guarantee for investment-related
intellectual property rights, and provide a framework for monitoring, evaluating and coordinating
technology transfer activity. Regarding BITs, the researcher recommends drafting a new BIT
model with technology transfer provisions. The provision must be constructed so that the state can
apply local content requirements to the extent that no international commitment exists. Model BITs
shall incorporate science, technology and innovation capacity-building elements as a strategy to promote technology transfer so that the state can benefit from the spillover effect of FDI.
