BIOTECHNOLOGY IN DEVELOPING COUNTRIES nology related to health care. The emphasis of the developing countries in health care delivery is increasingly shifted towards the preventive and community aspects. This requires development of vaccines, diagnostics, and drugs which can be administered on a large scale at low cost. Many health problems of developing world, e.g., tropical infectious diseases, are not shared by the developed world, and the R&D need to be done at least in part in the endemic areas. No matter which specific areas in agricul- ture, health or industry the developing countries choose to put major em- phasis on, the R&D activity should have a high quality by international standards. This requires continuous interaction with the international bio- technology communities. TECHNOLOGY TRANSFER Since the bulk of biotechnology is presently done in developed countries, technology transfer is a major aspect of concern for strengthening of bio- technology capabilities in the developing countries at the commercial level and in general. Developing countries, especially those which are industri- alizing, import substantial amounts of technology, biotechnology in- cluded, under contract. The contractual agreements are often restrictive with respect to technology transfer and diffusion. The restrictions, under- standable from the commercial point of view, pose a problem for endoge- nous development of biotechnology: the local technology cannot compete with the imported, yet inaccessible, technology. However, technology transfer is in many respects in the interest of both the technology owners and receivers. The investment and operating costs, for example, could be substantially lowered with effective transfer, local adaptation, and devel- opment. A balance, therefore, needs to be struck between the various as- pects of technology transfer. Many developing countries have tried to regulate transfer of technology through contractual agreements, in order to implement national policies on technology flow. A more promotive measure to regulate technology flow is to have technology information available, and perhaps a "match maker" unit to advise prospective buyers on suitability of the contractual agreements. Another promotive measure is to give financial and tax incen- tives for transfer of technology, regarding imported technology as a com- ponent of foreign investment to be attracted. Since biotechnology is a fast- developing field, it appears that, for developing countries with the goal of biotechnology development, promotive measures are, in general, to be