Investigating technology transfer projects and institutional development in developing countries

The purpose of this research paper is to demonstrate that the success of technology transfer projects depends, among others, also on the projects' conformity with the institutional development in the concerned country.

The paper focuses on a study of two different user models of solar home systems in two different African countries with different institutional development, Zambia and Kenya. In the studied countries the solar home systems and thus home electricity are available to the users under different circumstances and terms. These circumstances and terms are closely connected to the functioning of the economic and judicial institutions in the mentioned countries.

The paper illustrates that, while the technology transfer project based on a “fee‐for‐service” solar home system was successful in Zambia, it would be unsuccessful in Kenya. And contrariwise, the technology transfer project based on a “market” solar home system was successful in Kenya, but would be unsuccessful in Zambia. The reasons for this difference are based on the different institutional development in the mentioned countries.

The paper illustrates that the success of a technology transfer project is dependent not only on emission reductions, but also on the accessibility of the project to the targeted user. The latter requirement, however, depends on how well the project takes into account which institutions are developed in a country and how well they function.