"Fast-growing South–South trade and investment is an opportunity to ramp up developing countries’ abilities to master market-useful technologies and to bolster their abilities to innovate new products and services, an UNCTAD report says. The Technology and Innovation Report 2012, subtitled Innovation, Technology and South–South Collaboration, was released today. South–South economic cooperation is one of the major global economic developments of the past two decades. Exchanges between developing countries accounted for 55 per cent of global trade in 2010, as compared to 41 per cent in 1995, and this trend is already leading to useful diffusions of technology and innovative capacity, the Report says. Increased South–South exchange can lead to greater technological sharing, in a variety of ways. A first important channel is the import of goods, the Report says, which are used by importing countries to improve their production processes through copying and reverse engineering. Global production networks and foreign direct investment (FDI) are other factors that could promote transfers of technology and technological development in countries."