The Role of Foreign Investment in Promoting the International Transfer of Technology

Dr. Shaikhah Alhelali
Assistant Professor of Commercial Law
Kuwait International Law School


The role of foreign investment is one of the key factors that assist the promotion of the international transfer of technology. Developing countries use the foreign direct investment (FDI) as a tool in which it can achieve economic development. At the same time such tool can assist in transferring technologies to developing countries.
The World trade Organization (WTO) has incorporated some provisions related to international transfer of technology (ITT) under its Annexed Agreement Trade Related Aspects of Intellectual Property (the TRIPS Agreement). Therefore, a marriage started between trade and intellectual property. Such linkage between international transfer of technology and the economic development and growth resulted in increasing of the Foreign Direct Investment as a tool that developing countries required to promote in order to encourage the international transfer of technology.
The linkage between international transfer of technology and trade and economic growth is reflected in most of the provisions of the TRIPS Agreement. Therefore, exploring how can foreign direct investment be a tool to promote the international transfer of technology to developing countries an essential question that need to be answered.

Key words: technology, international trade, digital economy, developping country, economic development, intellectual property.

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