Access to markets: solutions from the North address problems of the South

The internationalization of science, technology and innovation is shaped by international events and external dimensions. As discussed in chapter 3, external forces inside and outside an institution shape internationalization and institutional, national and cultural aspects need to be considered (Chan and Dimmock, 2008). For instance, examples of external forces are international economic trends. One example of such trend is the rise of new actors in the world economy such as China and India. One view is that these external forces might influence actors’ perceptions (e.g. governments and researchers) of the benefits of forging relations with certain countries. International trends might shift behavior at home. For instance, domestic companies or academic researchers with a business orientation might respond to global trends such as

the rise of new economic power houses motivated by the idea of gaining to access to emerging markets (e.g. China, Brazil, India).

Furthermore, there has been an increased recognition that science and technology can be used as essential components of strategies to achieve sustainable development (Cash et al. 2003). Embedded in this perspective are the use and the development of technologies articulated as ideal solutions to wicked environmental problems. There is also a common belief that these environmental solutions can quickly diffuse and can be adopted by other nations through international networks and S&T alliances. Thus, the expectation that environmental technology developed by the research teams in the Global North will meet the environmental needs of the Global South can be seen as rationales for collaboration in this sphere.

[…] if you can leverage something that is very good, that can spread very quickly in this international world, it opens up a lot of opportunities and also it can improve things. I mean, a good solution, whatever it is, in this case environmental solutions can quickly spread and be adopted in the international collaborating world. (Manager, large Swedish company, June 12, 2014).

(Interview no. 11)

According to Boekholt et al. (2009, p. i) “in international cooperation in science, technology and innovation (STI), countries do not only seek partner countries solely on the basis of STI characteristics.” There are other rationales for forging scientific partnerships with countries. As discussed above, economic drivers explain actors’ interests in entering international research cooperation such as facilitating access to emerging markets, exporting technologies and boosting domestic industry. Furthermore, countries such as China are viewed as a locus for business opportunities where technology solutions from developed nations can potentially address domestic environmental issues. The expectation is that a new technology successfully tested in China will be disseminated to other countries.

The making of S&T relations and internationalization is also founded on marketing possibilities with emerging economies and on ideals. Such ideals include the view of an Asian world (Ong, 2011), represented by a group of

countries such as China, India and Singapore as the center of technology development and innovation. Particular regions are viewed as emerging business opportunities and places with rising economic and environmental problems for which solutions can be imported from other countries (Ong, 2011). These emerging global spaces are constructed as sites of intervention for which a team of actors comprised of researchers, companies, funding agencies and government leaders come together to present a solution (Ong, 2011). These claims support previous discussions regarding the need to address societal challenges as a driver for promoting STI cooperation.

The plan is to build first hand plant and then later on another 50 plants so it will really be a big thing in Honan province. Honan province is about half million people so it is vast thing. If you can get it through there on the large scale then you know that it will spread around in the rest of China and sort of later will spread to many countries in the world I guess, Germany and other countries. So, from my perspective, the expectation is that we will have good results… and this will lead to building a lot of plants […] (Professor¹² and researcher, Swedish university, September 4 2014).

The above statements suggest that emerging economies should be part of efforts to forge S&T linkages with other countries, therefore, part of research collaboration activities because of their sheer market size and the market opportunities they represent. Thus, not only internationalization is used as a means to bring technology produced in the Global North to other countries but also solutions to perceived environmental problems in the Global South. Access to markets is one of the main drivers of research cooperation. In addition, internationalization functions as a channel for sharing and communicating environmental solutions from the Global North to the Global South. One issue is that ambitions to tackle problems in the developing world or in emerging economies through international cooperation instruments might reinforce the notion that there are countries that are perpetually in need of assistance. This might imply that these nations are continually attempting to catch up with the world’s technology development. Catching up implies that one is continually

“lagging behind”, that one lacks the capabilities to reach a certain status and that

12 The same interviewee as interview no. 9

one is “not there yet.” It also highlights science and technology asymmetries among nations.

So for us we work with the car market and China, yes, the biggest market in the world so a lot of things happen in China. So we are there because of the development of the Chinese market and we believe that a lot of drivers regarding electrical hybrid cars are going to happen in China. So, we are working with several of the big car makers, both here in Europe for cars that they have been launched in China but also with the Chinese car manufacturers. So for us China is really an important strategy with our solutions for electric hybrid vehicles. So, therefore we are a lot in China and it has been from the beginning when we started the company. China has been really important for us. (CEO, Swedish start-up, August 22, 2014). (Interview no. 12).

We are mainly looking now into two areas. One is this sustainable fish farming which is not the farming itself but the treatment systems that are needed to circulate the water, the same water so you won’t consume fresh water to the extent that is actually going on right now and especially in China where this is a giant environmental concern because the ground water is dropping rapidly in some areas, partly due to a very, a very big industry around fish farming. You know, you just bring in new fresh water and pass it out to the environment. So, this is to circulate the same water; it is a huge savings of fresh water. So, this is identified as China is the biggest fish farming nation in the world, more than 60% [...] (Manager¹³, large Swedish company, June 12, 2014).

Emerging markets (e.g. China, Brazil, India) are perceived as the locus of new promises and of dissemination of practices developed in industrialized nations exported to less developed countries. This view is shared among several participants in the Sino-Swedish Eco-Innovation program. China and Latin America are also seen as new testing grounds for ideas and for environmental technologies where solutions generated in developed countries are perceived to have the potential to tackle environmental problems in other countries. These solutions also represent market opportunities for the technology developers.

This interpretation of the world might also suggest that less developed countries might not have the capability to find their own solutions to local problems. The following examples by different actors reflect the similar interpretations of desire

13 The same respondent as interview no. 11

to access foreign markets as rationales for promoting science, technology and innovation cooperation with other countries.

[…I think part of my responsibility as working in a research institute in Sweden it is to try to introduce Swedish companies to other markets and also in a more holistic global perspective, to spread knowledge about technology and competence that could help the development of environmental work in other parts of the world. And I know that Sweden is doing a pretty good job at this […] and I don’t want to sound like I am doing some kind of missionary work here, because there is a lot of good development in other countries, like let’s say Brazil for example. But I think when it comes to biogas production, then Scandinavia has a lead there. So, there we have something to offer but I don’t think we should be too, we should not go on missions there and solve everything.

But from my point of view, that is part of my responsibility, to try to get this knowledge introduced where I see that it is possible (Researcher, Swedish institute, August 20, 2015). (Interview no. 13).

But you have to consider that we have advantages and we have some niches and in certain areas Sweden is more advanced than our colleagues in Europe and in the United States, we know that. And it comes to the area of sanitation, and reuse and closing the loop in nutrients and energy. […] we can also see potentials that if we start collaborations, we can also find solutions not only for Brazil but for the rest, many areas in Latin America and also of course, the rest of the world, in Africa for example. So, there is a big potential in this kind of collaboration you know, it can be within a triangular collaboration. And we know there is demand:

2.6 billion people are lacking sanitation, and in Brazil it is 19 million. They don’t have any sanitation at all. It is a big number but in Brazil it is still small but for us 19 million is double the Swedish population. (researcher, research institute, august 15, 2015). (Interview no. 14).

We had actually amazing network here in Borås related to international collaboration to spread the Swedish idea of waste management. It is a very strong network. (University professor, Sweden August 28, 2014) (Interview no. 15).

A professor participating in one of the Eco-Innovation Cooperation programs shared similar views about how internationalization, through research

cooperation mechanisms, can help the dissemination of technologies from China to the rest of the world. The motivation for applying to government grant and participating in international research projects with his Chinese counterparts was twofold: 1) to find sustainable solutions for difficult environmental problems; 2) to use the successful stories of the past as justification for undertaking current research projects. The researcher also expressed his positive expectations about the research project. In his view, like the electrical bikes, working with biogas and bioethanol technology is a future promise and a safe bet, given the general perception that because of its sheer market size, any technology or project that succeeds in China is certain to succeed in other countries. Thus, internationalization is also interpreted as a means of dissemination of good practices, technologies and business opportunities.

So we are working with biogas and bioethanol. We know this is very important because the most difficult thing is to replace this fuel for vehicles. We can solve a lot of the other problems but the vehicles is still the key issue and what we are working with in this case is to try to solve these type of problems in an efficient way. So, the driving force is to see how we can get things up and running in a good way. If we can get it through in China we know it will spread all over the world also like electrical bikes. Look at the electrical bikes. You have like 60 million in China and now they are spreading out all over the world from there.

So, they have a very strong impact (Swedish professor¹⁴, September 4 2014).

Access to markets emerges as one of the main drivers for actively joining international S&T cooperation for the government, companies and researchers.

This purpose is also reflected in the goals of the Eco-Innovation Cooperation programs: to facilitate access to emerging markets through research partnerships with Brazil and China.

In summary, embedded in these cooperation instruments are discourses of intent with significant emphasis on how such initiatives can benefit Sweden; rightly justified and well-articulated in how the benefits would trickle down to the rest of the world. Moreover, the emphasis is on how such programs can help to

14 The same respondent as interview no. 9

disseminate useful knowledge about Sweden’s competency and competitive advantages. Paradoxically, the environmental issues that these particular business-like individuals try to tackle extend beyond their capacity to solve them. Likewise, the societal challenges that governments try to address extend beyond their capacity to resolve them. Naturally, in spite of good intentions and meaningful goals, solving today’s societal challenges cannot be achieved solely through the investment and dissemination of research cooperation programs or through short-term S&T collaboration instruments. The results are often rather a diffuse set of solutions and lose networks and projects that will accomplish the minimum, forming scattered international linkages.

7.3.6 Strengthening international reputation through competitiveness