Thomas K. Cheng University of Hong Kong A Developmental Approach to the Patent-Antitrust Interface Plenary 1: Finding the Right Balance between IPR and Competition Thomas K. Cheng University of Hong Kong

Economic Growth vs. Development Solow, Romer and other economists have identified productivity growth/improvement as the key to economic growth Development: More than just economic growth Some concern for equitable distribution of income Other developmental dimensions such as access to basic healthcare and education .

Innovation and Developing Countries A theoretical analysis of the relationship between patent protection and incentive to innovate Empirical studies Taylor & Silberston (1973) Mansfield (1986) The Yale survey (1987) Scherer & Weisburst (1995)

Innovation and Developing Countries Innovation Incentive Externalities—A concern for developing countries? Arguments in favor of a pro-consumer stance toward the patent-antitrust interface: Excessive consumer welfare loss Impaired access to basic necessities Stifling of domestic imitation

Some General Principles Scepticism about innovation incentive-based justifications Industry-specific approach Need to provide room for domestic innovation Focus on protecting consumer welfare Special regard to SMEs

Questions for consideration How feasible is the more pro-consumer approach to the patent-antitrust interface outlined above? Is an industry-specific approach too complicated for developing countries? At what point does a developing country to acquire sufficient innovative capacity for the law to be more focused on innovation?