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 Part II of this report. However, both these issues also arise in the international diffusion of technology.

67. Developing countries paid about $2 billion in 19S0 by way of royalties and fees, mainly to industrial countries. The gap in scientific and technological capabilities is particularly wide in areas of direct relevance to the objectives of sustainable development, including biotechnology and genetic engineering, new energy sources, new materials and substitutes, and low-waste and non-polluting technologies.

68. The principal policy issue as regards the impact of payments is the impact of patents and proprietary rights. In 1980, industrialized market economies accounted for 65 per cent of the world total of patents granted, and the socialist countries of Eastern Europe held 29 per cent. Developing countries held only 6 per cent, and most of these had been granted to non-residents. Proprietary rights are a key element in the commercial development of technology. But their application in certain areas may hamper the diffusion of environmentally sound technologies and may increase inequalities.

69. In the past. publicly funded research provided new technology to small producers, particularly farmers, on a full or subsidized basis. The situation is not very different now, and in areas such as new seed varieties there is some reason to believe proprietary rights could act as a major barrier to developing countries' acquisition of new technologies. International cooperation is essential to maintain the flow of genetic material and to ensure an equitable sharing of gains.

4.2 Building Up Technological Capabilities in Developing Countries
70. At present, most of the global research and development effort is devoted to military purposes or the commercial objectives of large corporations. Little of this is of direct relevance to conditions in developing countries. In many areas the gap in technological capabilities is narrowing, but these efforts must be supported by international assistance, especially /…