Patents and the transfer of technology to developing countries

This paper explores the implications of patents for the transfer of technology to developing countries, with a focus on developing countries that have significant scientific and technological capability. The contribution of this paper lies in the separation of different forms of technology transfer and analysis of the roles of patents in these different forms of transfer. It, in turn, reviews the impact of patents on the transfer of technology through foreign direct investment, on the transfer to indigenous firms, both through licensing and through independent innovation, and finally on the transfer of technology through public-sector research.