Abstract

This presentation examines how developing countries should navigate the interface between patent and competition law to foster technological advancement without compromising consumer welfare. While patent law prioritizes dynamic efficiency through exclusive rewards, competition law emphasizes static efficiency and lower prices. For developing nations, the weight of these considerations depends on their distance from the global technological frontier.

The analysis categorizes developing countries by technological capacity: production, technology adaptation, and innovation-driven economies. Research suggests that increased patent protection often fails to spur domestic innovation in lower-income countries, primarily benefiting foreign firms at a cost to local consumers. Consequently, these nations should focus on technology transfer. Since licensing offers the greatest boost to local capacity, patent-competition rules should be calibrated to minimize imitation risks and encourage voluntary transfers. Ultimately, the presentation advocates for a nuanced, industry-specific approach to balancing these legal frameworks.