UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q
(Mark One)

[x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended October 31, 2007
                                -----------------------------------------------

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 for the transition period from        to

                          Commission file number 1-8696
                                                 ------

                  *
                *****
              **-----**
            **-----       COMPETITIVE
          ****----        TECHNOLOGIES
            **=====       Unlocking the Potential of Innovation (R)
              **=====**
                *****
                  *  (R)  Technology Transfer and Licensing Services


                         COMPETITIVE TECHNOLOGIES, INC.
             (Exact name of registrant as specified in its charter)
                             www.competitivetech.net

Delaware                                                36-2664428
--------                                                ----------
(State or other jurisdiction of                       (I.R.S.Employer
incorporation or organization)                       Identification No.)

777 Commerce Drive, Suite 100
Fairfield, Connecticut                                   06825
----------------------                                   -----
(Address of principal executive offices)              (Zip code)

                                  (203) 368-6044
              (Registrant's telephone number, including area code)

                                       N/A
    (Former name, former address and former fiscal year, if changed since last
                                     report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  Yes [x]     No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.  See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act). Large
accelerated filer [  ]  Accelerated filer [  ]  Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in
rule 12b-2 of the Exchange Act).  Yes [  ]     No [X]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a courtYes [  ]     No [  ]

The number of shares of the registrant's common stock outstanding as of December
13, 2007 was 8,169,872 shares.

<PAGE>
                         COMPETITIVE TECHNOLOGIES, INC.
                         ------------------------------

                     INDEX TO QUARTERLY REPORT ON FORM 10-Q



PART I.  FINANCIAL INFORMATION                                          PAGE NO.
------------------------------                                          --------

Item 1.   Condensed Consolidated Financial Statements (Unaudited)

          Condensed Consolidated Balance Sheets at
          October 31, 2007 and July 31, 2007...................................3

          Condensed Consolidated Statements of Operations for the
          three months ended October 31, 2007 and 2006.........................4

          Condensed Consolidated Statement of Comprehensive
          Income (Loss) and Changes in Shareholders' Interest for
          the three months ended October 31, 2007..............................5

          Condensed Consolidated Statement of Cash Flows for the
          three months ended October 31, 2007 and 2006.........................6

          Notes to Condensed Consolidated Financial Statements............7 - 13

Item 2.   Management's Discussion and Analysis of Financial Condition
          and Results of Operations......................................14 - 18

Item 3.   Quantitative and Qualitative Disclosures About Market Risk..........19

Item 4.   Controls and Procedures.............................................20


PART II.  OTHER INFORMATION
---------------------------

Item 1.     Legal Proceedings.................................................21

Item 1A.    Risk factors......................................................21

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds.......21

Item 4.     Submission of Matters to a Vote of Security Holders...............21

Item 5.     Other.............................................................21

Item 6.     Exhibits..........................................................21

Signatures....................................................................22

Exhibit Index.................................................................23


                                        2
<PAGE>
                         PART I.  FINANCIAL INFORMATION

ITEM 1.     CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                 COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets

                                              OCTOBER 31, 2007  July 31, 2007
                                              ----------------  ---------------
ASSETS
Current Assets:
  Cash and cash equivalents                   $     5,069,983   $    6,572,076
  Receivables, net of allowance of $422,604
    at October 31, 2007 and July 31, 2007             445,456          739,797
  Available-for-sale securities                       462,623        1,630,237
  Inventory                                            62,881           44,781
  Prepaid expenses and other current assets           263,870          377,419
                                              ----------------  ---------------
    Total current assets                            6,304,813        9,364,310

Property and equipment, net                           309,018          304,185
Other long term assets                                 43,861           43,861
Intangible assets acquired, net                             -              377
                                              ----------------  ---------------
      TOTAL ASSETS                            $     6,657,692   $    9,712,733
                                              ================  ===============

LIABILITIES AND SHAREHOLDERS' INTEREST
Current Liabilities:
  Accounts payable                            $       690,967   $      727,808
  Accrued expenses and other liabilities            1,241,528        1,323,485
                                              ----------------  ---------------
    Total current liabilities                       1,932,495        2,051,293
Deferred Rent                                          67,337           62,624
Shareholders' interest:
  5% preferred stock, $25 par value,
    35,920 shares authorized, 2,427 shares
    issued and outstanding                             60,675           60,675
  Common stock, $.01 par value,
    20,000,000 shares authorized,
    8,107,380 shares issued                            81,073           81,073
  Capital in excess of par value                   35,390,549       35,263,453
  Accumulated deficit                             (30,874,988)     (28,315,344)
  Accumulated other comprehensive
    income (loss)                                         551          508,959
                                              ----------------  ---------------

    Total shareholders' interest                    4,657,860        7,598,816
                                              ----------------  ---------------
      TOTAL LIABILITIES AND
        SHAREHOLDERS' INTEREST                $     6,657,692   $    9,712,733
                                              ================  ===============

                             See accompanying notes

                                        3
<PAGE>
                   PART I.  FINANCIAL INFORMATION (Continued)
                   ------------------------------------------


                 COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Operations


                                           Three months ended October 31,
                                        ------------------------------------
                                                    2007               2006
                                        -----------------  -----------------
REVENUES
Retained royalties                      $        123,799   $        730,204
Investment income                                 80,014            164,972
Product Sales                                      6,796                  -
                                        -----------------  -----------------
                                                 210,609            895,176
                                        -----------------  -----------------
EXPENSES
Cost of Product Sales                              3,400                  -
Personnel and other direct
  expenses relating to revenues                1,107,524          1,057,008
General and administrative expenses            1,276,960            743,934
Patent enforcement expenses,
  net of reimbursements                          154,773            216,396
Loss on permanent impairment
  of available-for-sale securities               227,596                  -
                                        -----------------  -----------------
                                               2,770,253          2,017,338
                                        -----------------  -----------------
Loss before income taxes                      (2,559,644)        (1,122,162)
Provision (benefit) for income taxes                   -                  -
                                        -----------------  -----------------
NET LOSS                                $     (2,559,644)  $     (1,122,162)
                                        =================  =================
Basic and diluted loss per share        $          (0.32)  $          (0.14)
                                        =================  =================

Basic and diluted weighted
  average number of common
  shares outstanding:                          8,107,380          7,988,701

                             See accompanying notes

                                        4
<PAGE>

<TABLE>
<CAPTION>
                   PART I.  FINANCIAL INFORMATION (Continued)
                   ------------------------------------------

                 COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES
  Condensed Consolidated Statement of Comprehensive Income (Loss) and Changes in
       Shareholders' Interest for the three months ended October 31, 2007


<S>                      <C>     <C>      <C>        <C>      <C>          <C>            <C>         <C>

                                                                                          ACCUMU-
                                                                                          LATED
                         PREFERRED STOCK  COMMON STOCK                                    OTHER
                         ---------------  -----------------   CAPITAL                     COMPRE-     TOTAL
                         SHARES           SHARES              IN EXCESS    ACCUMU-        HENSIVE     SHARE-
                         OUTST-           OUTST-              OF PAR       LATED          INCOME/     HOLDERS'
                         ANDING  AMOUNT   ANDING     AMOUNT   VALUE        DEFICIT        (LOSS)      INTEREST
                         ------  -------  ---------  -------  -----------  -------------  ----------  ------------
Balance -
July 31, 2007             2,427  $60,675  8,107,380  $81,073  $35,263,453  $(28,315,344)  $ 508,959   $ 7,598,816

Comprehensive loss:
  Net loss                                                                   (2,559,644)               (2,559,644)
  Unrealized decrease
    in market value
    of securities                                                                          (585,452)     (585,452)
  Foreign currency
    translation
    adjustments
    on securities                                                                            62,490        62,490
  Reclassification
    to net loss                                                                              14,554        14,554
                                                                                                      ------------
  Comprehensive loss                                                                                   (3,068,052)
                                                                                                      ------------
  Compensation
    expense from
    stock option grants                                           127,096                                 127,096
                         ------  -------  ---------  -------  -----------  -------------  ----------  ------------
Balance -
October 31, 2007          2,427  $60,675  8,107,380  $81,073  $35,390,549  $(30,874,988)  $     551   $ 4,657,860
                         ======  =======  =========  =======  ===========  =============  ==========  ============

                                             See accompanying notes

</TABLE>
                                        5
<PAGE>

                   PART I.  FINANCIAL INFORMATION (Continued)
                   ------------------------------------------
                 COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statement of Cash Flows

                                             Three months ended October 31,
                                                   2007            2006
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                          $  (2,559,644)  $  (1,122,162)
  Non-cash and other expenses (income)
    included in net income (loss):
  Depreciation and amortization                     17,745          20,449
  Deferred rent                                      4,713               -
  Share-based compensation - stock options         127,096          68,245
  Stock compensation accrued                        40,500          50,000
  Gain on available-for-sale securities            (10,592)              -
  Loss on permanent impairment
    of available-for-sale securities               227,596               -
  Changes in assets and liabilities:
    Receivables                                    294,341         142,676
    Inventory                                      (18,100)              -
    Prepaid expenses and other assets              113,548         101,856
    Accounts payable and accrued
      expenses and other liabilities              (159,298)        328,992
                                             --------------  --------------
Net cash used in operating activities           (1,922,095)       (409,944)
                                             --------------  --------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment              (22,200)       (180,425)
  Proceeds from sale of
    available-for-sale securities                  442,202               -
                                             --------------  --------------
Net cash provided by (used in)
  investing activities                             420,002        (180,425)
                                             --------------  --------------

Net decrease in cash and cash equivalents       (1,502,093)       (590,369)
Cash and cash equivalents
  at beginning of period                         6,572,076      12,909,311
                                             --------------  --------------
Cash and cash equivalents
  at end of period                           $   5,069,983   $  12,318,942
                                             =============  ===============

                             See accompanying notes


                                        6
<PAGE>
                   PART I.  FINANCIAL INFORMATION (Continued)

                 COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

1.   BASIS OF PRESENTATION

     The interim condensed consolidated financial information presented in the
accompanying condensed consolidated financial statements and notes hereto is
unaudited.

     Competitive Technologies, Inc. ("CTT"), and its wholly owned and majority
owned subsidiaries (collectively, "we" or "us"), provide patent and technology
licensing and commercialization services throughout the world (with
concentrations in the U.S.A. and Asia), with respect to a broad range of life,
electronic, physical, and nano science technologies originally invented by
various universities, corporations and individuals.  We are compensated for our
services primarily by sharing in the license and royalty fees generated from the
successful licensing of our clients' technologies.  In fiscal 2008, we began
test marketing in the US an electronic device used for stress reduction and
memory improvement purposes, selling about 20 units in the 2008 first quarter.
The Company is seeking US distributors for this product. The condensed
consolidated financial statements include the accounts of CTT and its
subsidiaries.  Inter-company accounts and transactions have been eliminated in
consolidation.  Certain prior year amounts have been reclassified to conform to
the current year's presentation.

     We believe we made all adjustments necessary to present the unaudited
condensed consolidated financial statements in conformity with accounting
principles generally accepted in the United States of America.  The results for
the three months ended October 31, 2007, are not necessarily indicative of the
results that can be expected for the full fiscal year ending July 31, 2008.

     The interim unaudited condensed consolidated financial statements and notes
thereto, as well as the accompanying Management's Discussion and Analysis of
Financial Condition and Results of Operations, should be read in conjunction
with our Annual Report on Form 10-K for the year ended July 31, 2007, filed on
October 29, 2007.

     The Company incurred an operating loss for the first quarter of fiscal
2008, as well as operating losses in fiscal 2007 and 2006. At the current
spending levels, the Company does not have sufficient cash flow to fund
operating expenses beyond fiscal 2008. This condition raises substantial doubt
about the Company's ability to continue as a going concern. The financial
statements do not include any adjustments to reflect the possible future effect
of the recoverability and classification of assets or the amounts and
classifications of liabilities that may result from the outcome of this
uncertainty.

     The Company's continuation as a going concern is dependent on its
developing other recurring revenue streams sufficient to cover operating costs.
The Company is currently pursuing sale of certain assets and technologies while
it pursues licensing opportunities for its remaining portfolio of technologies.
There can be no assurance that the Company will be successful in such efforts.
Failure to develop a recurring revenue stream sufficient to cover operating
expenses would significantly negatively affect the Company's financial position.

                                        7
<PAGE>

2.   NET LOSS PER COMMON SHARE

     For the three months ended October 31, 2007 and 2006, respectively, 791,999
and 1,097,973 shares of outstanding common stock options were excluded from the
computation of diluted net loss per share because they were anti-dilutive.

3.   COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Comprehensive loss:               Three months Ended October 31,
                                       2007            2006
                                  --------------  --------------
Net loss                          $  (2,559,644)  $  (1,122,162)
Unrealized increase (decrease)
  in market price of securities        (585,452)        235,717
Foreign currency translation
  adjustments on securities              62,490           1,106
Reclassification to net income           14,554               -
                                  --------------  --------------
Comprehensive loss                $  (3,068,052)  $    (885,339)
                                  ==============  ==============

Accumulated other comprehensive loss consists of the following:

                                   October 31,    July 31,
                                      2007          2007
Accumulated net unrealized
  holding income (loss) on
  equity securities              $   (241,968)  $  80,951
Accumulated unrealized foreign
  currency translation gains          144,001     195,884
Accumulated unrealized gain
  from reversal of sale
  restriction discount                 98,518     232,124
                                 -------------  ---------
Accumulated other
  comprehensive income (loss)    $        551   $ 508,959
                                 =============  =========

4.   RECEIVABLES

Receivables consist of the following:
                                        October 31,   July 31,
                                              2007       2007
                                       ------------  ---------
Royalties, net of allowance of
  $422,604 at October 31, 2007
  and July 31, 2007                    $     61,333  $ 513,085
Receivable from insurance carrier           342,267    177,304
Other                                        41,856     49,408
                                       ------------  ---------
Total receivables                      $    445,456  $ 739,797
                                       ============  =========
5.     INVENTORY

Inventory consists primarily of thermal therapy units which were sold in the
second quarter 2008.  The balance of the inventory is for the stress reduction
and memory improvement device.

                                        8
<PAGE>

Inventories, consisting of finished goods, are stated at the lower of cost
(first-in, first-out) or market.

6.     EQUITY SECURITIES

     The Palatin and Clinuvel common stocks we hold are categorized as
available-for-sale securities, carried at fair value, and classified as current
assets. The fair value of the equity securities and other investments consists
of the following:

                               October 31,     July 31,     Number
                                      2007         2007  of shares          Type
                                ----------  -----------  ---------  ------------

Palatin (at fair market value)  $   68,000  $   311,100    170,000  Common Stock
Clinuvel (basis $394,073)          394,623            -    913,032  Common Stock
    (original basis $825,682)            -    1,319,137  1,913,032  Common Stock
MelanoTan                               --           --    378,000  Common Stock
NTRU Cryptosystems, Inc.                --           --  3,129,509  Common Stock
                                ----------  -----------  ---------  ------------
                                $  462,623  $ 1,630,237

     During the first three months of fiscal 2008 we sold 1,000,000 shares of
Clinuvel stock for $442,201 with a cost basis of $431,609. The gain on sale of
$10,592, including gross gains of $23,190 and gross losses of $12,598, is
included in investment income.

     As of October 31, 2007, the Company determined that the decline in value of
the Palatin shares was other than temporary. As a result, the Company reduced
the amount recorded as available for sale securities to equal the fair market
value of such shares at October 31, 2007 and recognized a Loss on permanent
impairment of available for sale securities of $227,596 during the first quarter
of fiscal 2008.

     The following components of other comprehensive income were reclassified to
net income:

                                          For the three
                                          months ended
                                          October 31, 2007
Unrealized net holding losses             $        262,533
Foreign currency translation adjustments          (114,373)
Sale restriction discount                         (133,606)
                                          -----------------
Reclassified to net income                $         14,554
                                          =================

7.   ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consist of the following:

                                         October 31,     July 31,
                                                2007         2007
                                        ------------  -----------

Royalties payable                       $    415,301  $   594,331
Accrued compensation                         354,504      236,218
Accrued professional fees                    342,371      388,779
Other                                        129,352      104,157
                                        ------------  -----------
Accrued expenses and other liabilities  $  1,241,528  $ 1,323,485
                                        ============  ===========

8.     SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION PLANS

     The Company accounts for its stock-based employee compensation arrangements
under SFAS No. 123 (revised 2004), "Share Based Payment" ("SFAS No. 123R"),
which requires companies to

                                       9
<PAGE>
recognize the cost of employee services received in exchange for awards of
equity instruments, based on the grant date fair value of those awards, in the
financial statements.

     During the first quarter of fiscal 2008, the Company granted to its
directors options to purchase an aggregate of 50,000 shares of common stock
under the Directors' Stock Option Plan at a weighted average exercise price of
$2.52 per share that vest immediately. The fair value of these options was
approximately $81,440, which was recorded as non-cash compensation expense
during the three months ended October 31, 2007.

     During the first quarter of fiscal 2008, the Company granted to its
employees options to purchase an aggregate of 190,000 shares of common stock
under the 1997 Employees' Stock Option Plan at an exercise price of $2.25 which
vest over the next four years. The fair value of these options was $272,080,
which will be recognized as non-cash compensation expense over the vesting
period.

     For the three months ended October 31, 2007, the Company recognized
approximately $45,656 of non-cash compensation expense for the fair value of
options granted to employees.

     The fair value of the Black-Scholes options-pricing model was calculated
with the following weighted average assumptions used for the grant: risk-free
interest rates from 4.23% to 4.62%; expected life five years; expected
volatility from 74.408% to 75.746%, and expected dividends of zero. The fair
value generated by the Black-Scholes model may not be indicative of the future
benefit, if any, that may be received by the option holder.

9.     CONTINGENCIES

     Carolina Liquid Chemistries Corporation, et al. - On August 29, 2005, we
filed a complaint against Carolina Liquid Chemistries Corporation ("Carolina
Liquid") in the United States District Court for the District of Colorado,
alleging infringement of our patent covering homocysteine assays, and seeking
monetary damages, punitive damages, attorneys' fees, court costs and other
remuneration at the option of the court.  Carolina Liquid was served on
September 1, 2005.  We became aware of other infringers and amended our
complaint to add as defendants Catch, Inc. ("Catch") and the Diazyme
Laboratories Division of General Atomics ("Diazyme").  On September 6, 2006,
Diazyme filed for declaratory judgment in the Southern District of California
for a change in venue and a declaration of non-infringement and invalidity.  On
September 12, 2006, the District Court of Colorado ruled that Catch and Diazyme
be added as defendants to the Carolina Liquid case.  On October 23, 2006,
Diazyme requested the United States Patent and Trademark Office (the "USPTO")
re-evaluate the validity of our patent. This request was granted by the USPTO on
December 14, 2006 and re-examination proceedings are underway.  We do not expect
an adverse finding by the USPTO, however, the re-examination process will
further delay the resolution of the case.  Further action in this case is
pending.

     Palatin - CTT initiated litigation on September 14, 2005, against Palatin
as a result of Palatin's breach of a Settlement Agreement between CTT and
Palatin dated June 17, 2005. The settlement resolved a prior dispute regarding
CTT's rightful portion of certain sublicense fees Palatin received from King
Pharmaceuticals. The parties have filed their complaints, counterclaims, and
responses, and discovery is underway.

     CTT commenced an arbitration proceeding on June 5, 2006, as a result of
Palatin's breach of a License Agreement between CTT and Palatin dated March 31,
1998. The three-member arbitrators' panel has been selected and a formal hearing
was to have been held at beginning of November 2007. The November hearing has
been postponed amid continuing discussions by both parties. The arbitrators'
panel agreed to allow both sides to file dispositive motions to summarily
resolve certain claims.


                                       10
<PAGE>
     On  October  2,  2007,  we  presented  Palatin with a notice that it was in
default of the PT-14 technology license agreement stating that Palatin committed
a  material  breach of the agreement originally signed between the two companies
on  March  31,  1998.

     Ben Marcovitch and other co-defendants - On August 8, 2007 we announced
that former CTT Director Ben Marcovitch had been removed for cause from our
Board of Directors by unanimous vote of CTT's five Directors for violating CTT's
Code of Conduct. At that time, CTT also withdrew from its involvement with
Agrofrut, E.U., a nutraceutical firm brought to CTT by Mr. Marcovitch. As
announced on April 10, 2007, CTT had paid $750,000 to Agrofrut for a 5%
ownership, and certain marketing and investment options in Agrofrut.

     On August 15, 2007, we retained Greenberg Traurig, LLP, an international
law firm, to recover the funds from Agrofrut, and Juan Carlos Esguerra of the
Bogota, Colombia-based law firm, Esguerra, Barrera, Arriaga, to handle CTT's
affairs in Colombia.  CTT's advisors assembled the following information, which
we included in our subsequent Federal complaint described below.  Breen &
Associates, an independent investigative firm, developed evidence that showed
that Mr. Marcovitch and Agrofrut provided CTT's Board of Directors with false
and misleading information.  Included in those findings was the fact that papers
submitted by Mr. Marcovitch and Agrofrut prior to the March 28, 2007 CTT Board
meeting listed Dr. Raul Aragon Davalos as an executive and Chief Scientist of
Agrofrut, and the inventor of Agrofrut's new technology to remove complex
compounds such as bromelain and xylitol, at better than 99% purity, from
pineapples and other organic waste.  Dr. Raul Aragon Davalos had actually been
killed in a drive-by shooting in Cali, Colombia on February 28, 2007.  Dr. Raul
Aragon Davalos's assassination was known to Mr. Marcovitch and Betty Rios
Valencia, President and CEO of Agrofrut and former spouse of Mr. Marcovitch, as
well as to other executives of Agrofrut, but was never revealed to CTT by them.
Mr. Marcovitch had admitted to a CTT outside counsel, and to a CTT shareholder,
that he had attended Dr. Raul Aragon Davalos's funeral.  Further, the
investigations have shown that Dr. Raul Aragon Davalos was a convicted drug
trafficker and that Ms. Rios Valencia also has a drug conviction record.  Among
other things, the involvement of Mr. Marcovitch, Ms. Rios Valencia and John
Derek Elwin, III, a former CTT employee, with convicted drug traffickers
resulted in CTT's decisive actions against these individuals.

     On August 31, 2007 we filed a Federal complaint in the U.S. District Court
for the District of Connecticut against Mr. Marcovitch and other co-defendants.
The complaint claims that false and misleading information had been provided to
CTT in a conspiracy to fraudulently obtain funds from CTT using the Agrofrut
transaction. Others named in the suit are Ms. Rios Valencia, Mr. Elwin, III, and
Agrofrut, E.U. In our lawsuit, we requested, among other relief, punitive
damages and attorneys' fees.

     Based upon our understanding of the facts and issues, we have presented our
findings in our Federal complaint in a manner that will allow shareholders to
understand the gravity of the charges. It is our opinion and that of our Board
of Directors that this lawsuit is required to recover our $750,000 and to settle
outstanding issues regarding the named parties. The recent in-depth due
diligence and subsequent investigation by Breen & Associates, conducted prior to
Mr. Marcovitch's removal from the Board, disclosed several issues of credibility
and raised serious concerns regarding the defendants named in the lawsuit.

     On October 22, 2007 at a show cause hearing, the Court stated that all
defendants named in the case, and their associates, were enjoined from any
further use of any remaining part of the $750,000 received from CTT.  The Court
ordered a full disclosure of all accounts where remaining funds are held, and a
complete description of the disposition of any portion of the CTT payment must
be made to CTT's counsel.  At a

                                       11
<PAGE>
December 7, 2007 hearing, the Court requested CTT to specify an appropriate
Prejudgment Remedy for the Court to consider. We intend to aggressively pursue
this matter. We have also filed a claim under our fraud insurance policy.

Securities and Exchange Commission --On August 11, 2004, the SEC filed a civil
suit in the United States District Court for the District of Connecticut, naming
Frank R. McPike, Jr., former President and CEO of CTT, and six individual
brokers, alleging that from at least July 1998 to June 2001, the defendants were
involved in a scheme to manipulate the price of our stock. The case relates to
our 1998 stock repurchase program under which we repurchased shares of our
common stock from time to time during the period from October 28, 1998 to March
22, 2001. CTT was named as a defendant in the suit due to the alleged conduct of
Frank R. McPike, Jr., whose conduct in connection with the stock repurchase
program was imputed to CTT as a matter of law. Relating to CTT, the SEC sought a
permanent injunction prohibiting us from further violations of the Securities
Exchange Act of 1934, and a civil penalty pursuant to Section 21(d)(3) of the
Securities Exchange Act of 1934 (this section provides for maximum penalties of
$550,000 for a corporate entity and $110,000 per individual). On September 24,
2004, we responded to this civil suit, and filed a motion to dismiss the suit.
On October 15, 2004, the SEC filed a motion opposing our motion to dismiss the
suit. On July 21, 2005, our motion to dismiss the suit was denied. On April 10,
2006, we filed a separate motion for summary judgment to dismiss the case, and
on June 15, 2006, the SEC filed a motion opposing our motion for summary
judgment. On November 6, 2006, the court denied our motion for summary judgment.
Our appeal of the denial of our motion for summary judgment in our favor was not
successful.

     We previously filed suit against our directors' and officers' insurance
carrier to obtain reimbursement of our costs to defend us and our directors and
officers. As part of an October 2004 settlement, our insurance carrier
acknowledged that the deductible under our insurance policy had been satisfied
relating to the SEC's civil suit. As a result, defense costs incurred in 2005
and thereafter have been covered by our insurance carrier.

     On October 10, 2007 we agreed to a settlement of this case without the
Company admitting or denying the allegation of the complaint, and consenting to
be permanently restrained and enjoined from violating Sections 9(a) and 10(b) of
the Securities Exchange Act of 1934, and rule 10b-5 thereunder. No fines or
penalties were imposed on the Company by the SEC in connection with this
settlement. The settlement agreement has been approved by the SEC and on October
26, 2007 was accepted by the Connecticut Federal District Court. This will close
the SEC's investigation and proceedings against the Company. No members of CTT's
current Board or management held positions with the Company during the period of
1998-2001.

     Frank R. McPike, who was charged separately from the Company but covered
under the Company's insurance, personally agreed on a settlement with the SEC,
which was accepted by the court on October 31, 2007. The Company incurred no
costs in connection with Mr. McPike's settlement.  The penalty phase for Mr.
McPike is now under review by Mr. McPike, the SEC, and the Court.

                                       12
<PAGE>

     ICR, LLC - On August 3, 2007, ICR, LLC filed a complaint in Superior Court,
Judicial District of Fairfield, at Bridgeport, Connecticut against CTT in an
attempt to collect funds allegedly owed them from a previously cancelled
contract. Previous management had employed ICR for public relations activity
during their proxy contest in their attempt to be re-elected. The consulting
contract was cancelled by the new management after their election in February
2007.

     Employment Matters - In August 2007, a former employee filed another
complaint with OSHA alleging that CTT had unfairly banned him from the
workplace. We believe the complaint is without merit and expect to overcome the
complaint as in other filings by Mr. Bechtel. This case is still in preliminary
stages and no outcome can be predicted at this time.

     Summary - We may be a party to other legal actions and proceedings from
time to time. We are unable to estimate the legal expenses or losses we may
incur, or damages we may recover in these actions, if any, and have not accrued
potential gains or losses in our financial statements. We record expenses in
connection with these actions as they are incurred.

     We believe we carry adequate liability insurance, directors' and officers'
insurance, casualty insurance, for owned or leased tangible assets, and other
insurance as needed to cover us against claims and lawsuits that occur in the
ordinary course of our business.  However, an unfavorable resolution of any or
all matters, and/or our incurrence of legal fees and other costs to defend or
prosecute any of these actions may have a material adverse effect on our
consolidated financial position, results of operations and cash flows in a
particular period.


                                       13
<PAGE>
ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

     Statements about our future expectations are "forward-looking statements"
within the meaning of applicable Federal Securities Laws, and are not guarantees
of future performance.  When used in this Form 10-Q, the words "may," "will,"
"should," "anticipate," "believe," "intend," "plan," "expect," "estimate,"
"approximate," and similar expressions are intended to identify such
forward-looking statements.  These statements involve risks and uncertainties
inherent in our business, including those set forth in Item 1A under the caption
"Risk Factors," in our most recent Annual Report on Form 10-K for the year ended
July 31, 2007, filed with the Securities and Exchange Commission ("SEC") on
October 29, 2007, and other filings with the SEC, and are subject to change at
any time.  Our actual results could differ materially from these forward-looking
statements.  We undertake no obligation to update publicly any forward-looking
statement.

OVERVIEW

     We are a full service technology transfer and licensing provider.  We
provide technology transfer, selling and licensing services focused on the
technology needs of our customers, matching those requirements with commercially
viable technology solutions, bridging the gap between market demand and
innovation.  We develop relationships with universities, companies, inventors
and patent or intellectual property holders to obtain the rights or a license to
their intellectual property, principally patents and inventions (collectively,
the "technology" or "technologies").  They become our clients, for whom we find
markets to sell or further develop their technology.  We also develop
relationships with those who have a need or use for technologies.  They become
our customers, usually through a license or sublicense.  We identify and
commercialize innovative technologies in life and physical sciences,
electronics, and nano science developed by universities, companies and
inventors.  Our goal is to maximize the value of intellectual assets for the
benefit of our clients, customers and shareholders.

     We earn revenues primarily from licensing our clients' and our own
technologies to our customers (licensees).  Our customers pay us royalties based
on usage of the technology, and we share those royalties with our clients.  Our
customer's revenues and therefore our revenues fluctuate due to one-time upfront
license fees, frequency of new licenses granted, expiration of existing
licenses, and/or the expiration or economic obsolescence of patents underlying
licenses.  In fiscal 2008, we began test marketing in the US an electronic
device used for stress reduction and memory improvement purposes, selling about
20 units in the 2008 first quarter.  The Company is seeking US distributors for
this product.

     The following discussion and analysis provides information we believe is
relevant to an understanding of our financial condition and results of
operations. This discussion and analysis should be read in conjunction with our
Condensed Consolidated Financial Statements and the Notes thereto.

     RELIANCE ON ONE REVENUE SOURCE. During fiscal 2007, we had a significant
concentration of revenues from our homocysteine assay technology. The patent for
this technology expired in July 2007 and we will not receive revenues for sales
made after that date. We continue to seek new technology licenses to mitigate
the concentration of revenues, and replace revenues from expiring licenses.

                                       14
<PAGE>
     Presentation

     We rounded all amounts in this Item 2 to the nearest thousand dollars
(except per share data). Certain amounts may not total precisely.  All periods
discussed in this Item 2 relate to our fiscal year ending July 31 (first,
second, third and fourth quarters ending October 31, January 31, April 30 and
July 31, respectively).

RESULTS OF OPERATIONS - THREE MONTHS ENDED OCTOBER 31, 2007 ("FIRST QUARTER
2008") VS. THREE MONTHS ENDED OCTOBER 31, 2006 ("FIRST QUARTER 2007")

     SUMMARY OF RESULTS

     We incurred a net loss for the first quarter 2008 of $2,560,000 or $0.32
per share, compared to a net loss of $1,122,000 or $0.14 per share, for the
first quarter 2007, an increased net loss of $1,438,000, or $0.18 per share.  As
explained in detail below, the increase in the net loss is due to a $685,000
decrease in revenues and a $753,000 increase in expenses.

     REVENUES

     In the first quarter 2008, total revenues were $211,000, compared to
$895,000 for the first quarter 2007, a decrease of $685,000, or 76%.

     Retained royalties for the first quarter 2008 were $124,000, which was
$606,000, or 83% less than the $730,000 of retained royalties reported in the
first quarter 2007. The following compares retained royalty revenues by
technology in the first quarter 2008 with the first quarter 2007.

                          For the three months
                             ended October 31,
                          --------------------
                                                   Increase   % Increase
                               2007       2006    (Decrease)   (Decrease)
                          ---------  ---------  ------------  -----------
Homocysteine assay           26,000    575,000     (549,000)        (95)%
All other technologies       98,000    155,000      (57,000)        (37)%
                          ---------  ---------  ------------  -----------
TOTAL RETAINED ROYALTIES  $ 124,000  $ 730,000  $  (606,000)        (83)%
                          =========  =========  ============  ===========

     Royalty revenues from our homocysteine technology decreased $549,000 in the
first quarter 2008 compared to the first quarter 2007, or a 95% decrease.  The
decrease is due to the expiration of the underlying patent in July 2007.

     Investment income includes dividends and interest earned on our invested
cash, as well as gains from the sale of available-for-sale securities.
Investment income was $80,000 in the first quarter 2008, which was a decrease of
$85,000, or 52% from the $165,000 reported for the first quarter 2007.  The
decrease was due to lower invested balances for the current quarter as compared
to the prior year.

     Product sales consists of sales of our new stress management and electronic
memory improvement product for the first quarter of fiscal 2008. In fiscal 2008,
we began test marketing in the US an electronic device used for stress reduction
and memory improvement purposes, selling about 20 units in the 2008 first
quarter. The Company is seeking US distributors for this product.

                                       15
<PAGE>
     EXPENSES
                                   For the three months
                                      ended October 31,
                                 ----------------------
                                                          Increase   % Increase
                                       2007        2006  (Decrease)   (Decrease)
                                 ----------  ----------  ----------  -----------
Cost of product sales            $    3,000  $        -  $  3,000           na
Personnel and other direct
  expenses relating to revenues   1,108,000   1,057,000    51,000            5 %
General and administrative
   expenses                       1,277,000     744,000   533,000           72 %
Patent enforcement expenses net
  of reimbursements                 155,000     216,000   (61,000)         (28)%
Loss on permanent impairment
  of available-for-sale
  securities                        227,000           -   227,000           na
                                 ----------  ----------  ----------  -----------
    TOTAL EXPENSES               $2,770,000  $2,017,000  $753,000           37 %
                                 ==========  ==========  ==========  ===========

     Total expenses increased $753,000 in the first quarter 2008, compared to
the first quarter 2007.

     Cost of product sales consist of the cost of our new electronic stress
management and memory improvement product for the first quarter of fiscal 2008.

     Personnel and other direct expenses relating to revenues increased a net
$51,000 in the first quarter 2008, compared to the first quarter 2007, with
increases in patent and technology costs of $39,000, marketing costs of $17,000,
consulting costs of $37,000, as well as severance costs associated with staff
reductions in August 2007 of $203,000, offset by decreased payroll and related
expenses of $244,000.

     General and administrative expenses increased a net $533,000 in the first
quarter 2008, compared to the first quarter 2007 primarily due to litigation
expense regarding Agrofrut E.U. investment of $348,000 and increased activity in
a complaint filed by a former employee of $59,000, as well as an increase in
investor relations costs of $60,000 and non-cash compensation related to stock
options granted to Directors in August of $81,000, offset by decreases in
Directors' fees and expenses of $44,000.

     Patent enforcement expenses, net of reimbursements, decreased a net $61,000
in the first quarter 2008, compared to the first quarter 2007. Patent
enforcement expenses vary, depending on the activity relating to outstanding
litigation.

     Loss on permanent impairment of available-for-sale securities of $227,000
relates to our investment in Palatin shares. During the first quarter of fiscal
2008, the Company determined that the decline in market value of the Palatin
shares was other than temporary and wrote the investment down to its fair market
value as of October 31, 2007.

     Financial Condition and Liquidity

     Our liquidity requirements arise principally from our working capital
needs, including funds needed to find and obtain new technologies and to protect
and enforce our intellectual property rights, if necessary. We fund our
liquidity requirements with a combination of cash on hand and cash flows from
operations, if any, including royalty legal awards.

                                       16
<PAGE>
     At October 31, 2007, we had no outstanding debt or available credit
facility, and we believe that it would be very difficult for CTT to obtain any
form of debt financing due to the current composition of our balance sheet,
including a lack of hard assets against which to borrow, and the unpredictable
nature of our annual cash flows. Our financing options currently are limited. We
must rely on cash on hand and cash flows from operations, if any, though this
situation could change in the future.

     While we still believe we will be successful in increasing recurring
revenues in fiscal 2008 by licensing new technologies to customers and
collecting due, but unpaid, royalties on existing licenses, to more than offset
our operating costs and produce a profit for fiscal 2008, to date, such revenue
and achievement of profitability has not yet occurred. If necessary, we will
meet anticipated operating cash requirements by further reducing costs, and/or
monetizing assets. Through December 10, 2007, we have continued to sell our
available-for-sale securities including all of our holdings of Palatin shares
for proceeds of approximately $314,000. We have approximately 200,0000 shares of
Clinuvel stock remaining to be sold. The market value at current prices is
approximately $70,000. We expect to be able to sell our pain management device
(which already has CE approval in the European Union) starting in the third
quarter of fiscal 2008. The Palatin arbitration and the lawsuit against Ben
Marcovitch should have future costs at greatly reduced levels than what is
reflected in our Statement of Operations through October 31, 2007. We believe
that the combination of our cash on hand and existing revenue flow will be
sufficient to meet our current and anticipated operating cash requirements
through fiscal 2008.

     Cash and cash equivalents consist of demand deposits and interest earning
investments with maturities of three months or less, including overnight bank
deposits and money market funds. We carry cash equivalents at cost.

     At October 31, 2007, cash and cash equivalents were $5,069,983 compared to
$6,572,076 at July 31, 2007. Cash used in operating activities was $1,922,095,
reflecting our net loss, which included legal fees of approximately $500,000
which we do not believe will continue. Cash flow provided by investing
activities includes $442,000 proceeds from the sale of securities available for
sale. Our cash and cash equivalents balance is approximately $4,800,000 as of
December 10, 2007.

     We currently have the benefit of using a portion of our accumulated NOLs to
eliminate any future regular federal and state income tax liabilities. We will
continue to receive this benefit until we have utilized all of our NOLs (federal
and state). However, we cannot determine when and if we will be profitable and
utilize the benefit of the remaining NOLs before they expire.

     CAPITAL REQUIREMENTS

     The Company incurred an operating loss for the first quarter of fiscal
2008, as well as operating losses in fiscal 2007 and 2006. At the current
spending levels, the Company does not have sufficient cash flow to fund
operating expenses beyond fiscal 2008. This condition raises substantial doubt
about the Company's ability to continue as a going concern.

     The Company's continuation as a going concern is dependent on its
developing other recurring revenue streams sufficient to cover operating costs.
Our plan is to increase annual recurring revenues, achieve profitability and
increase shareholder value.  To accomplish our goals, we have increased our
global marketing capabilities, searching for new sources of technologies,
licensing those technologies, and establishing strategic relationships.  The
Company is currently pursuing sale of certain assets and

                                       17
<PAGE>
technologies while it puts its plan into operation. There can be no assurance
that the Company will be successful in such efforts. Failure to develop a
recurring revenue stream sufficient to cover operating expenses would
significantly negatively affect the Company's financial position.


     CONTRACTUAL OBLIGATIONS AND CONTINGENCIES

     There have been no substantial changes to our contractual obligations since
July 31, 2007.

     Contingencies. Our directors, officers, employees and agents may claim
indemnification in certain circumstances. We are currently exposed to potential
indemnification claims by a former executive in connection with a civil suit
filed by the SEC (See Note 9 of Notes to Condensed Consolidated Financial
Statements includes in Part I, Item 1). We seek to limit and reduce our
potential financial obligations for indemnification by carrying directors and
officers liability insurance, subject to deductibles.

     We also carry liability insurance, casualty insurance, for owned or leased
tangible assets, and other insurance as needed to cover us against potential and
actual claims and lawsuits that occur in the ordinary course of business.

     Many of our license and service agreements provide that upfront license
fees, license fees and/or royalties we receive are applied against amounts that
our clients or we have incurred for patent application, prosecution, issuance
and maintenance costs. If we incur such costs, we expense them as incurred, and
reduce our expense if we are reimbursed from future fees and/or royalties we
receive. If the reimbursement belongs to our client, we record no revenue or
expense.

     As of October 31, 2007, CTT and its majority owned subsidiary, Vector
Vision, Inc. ("VVI"), have remaining obligations, contingent upon receipt of
certain revenues, to repay up to $199,006 and $210,123, respectively, in
consideration of grant funding received in 1994 and 1995. CTT is also obligated
to pay at the rate of 7.5% of its revenues, if any, from transferring rights to
certain inventions supported by the grant funds. VVI is obligated to pay at
rates of 1.5% of its net sales of supported products or 15% of its revenue from
licensing supported products, if any. We recognize these obligations only if we
receive revenues related to the grant funds. We recognized approximately $912 of
these obligations in 2008.

     Currently, we engage independent consultants who provide us with business
development, consulting and/or evaluation services under contracts that are
cancelable on certain written notice. These contracts include contingencies for
potential incentive compensation earned solely on sales resulting directly from
the work of the consultant. We have neither accrued nor paid significant
incentive compensation under such contracts in fiscal 2008 or 2007.

CRITICAL ACCOUNTING ESTIMATES

     There have been no significant changes in our accounting estimates
described under the caption "Critical Accounting Estimates" included in Part II,
Item 7, "Management's Discussion and Analysis of Financial Condition and Results
of Operations," in our Annual report on Form 10-K for the year ended July 31,
2007.

                                       18
<PAGE>
ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     We do not have significant market risk to the valuation of our assets other
than risks related to our equity security holdings of Clinuvel Pharmaceuticals
Limited ("Clinuvel").  The value of this investment is included as current
assets.  During the quarter ended October 31, 2007, 1,000,000 shares of the
Clinuvel stock were sold.  The value of this asset is subject to share price
fluctuations as well as foreign currency fluctuations of the Australian Stock
Exchange-traded Clinuvel shares.  We consider unrealized fluctuations in the
fair value of the Clinuvel shares to be temporary, and have recorded those
changes in other comprehensive loss.

     As of October 31, 2007, we determined that the decline in value of our
securities holdings of Palatin Technologies, Inc. ("Palatin") was other than
temporary. As a result, the Company recorded a loss on permanent impairment of
available-for-sale securities of $227,596 during the first quarter of fiscal
2007.

     During the three months ended October 31, 2007, the following changes in
value occurred with respect to Palatin and Clinuvel shares:

                                   For the three months ended October 31, 2007
                                   -------------------------------------------

                                       Palatin     Clinuvel    Total
                                       ----------  ----------  ----------

Unrealized increase (loss) in market
  value of securities                  $       -   $(585,452)  $(585,452)
Foreign currency translation
  adjustments on securities                    -      62,490      62,490
Reclassification to net income           (15,504)     30,058      14,554
                                       ----------  ----------  ----------

Other comprehensive income (loss)      $ (15,504)  $(492,904)  $(508,408)
                                       ==========  ==========  ==========

                                       19
<PAGE>
ITEM 4.     CONTROLS AND PROCEDURES

     (a)  Evaluation of disclosure controls and procedures
          ------------------------------------------------

          Our management, including our President, Chief Executive Officer, and
Interim Chief Financial Officer, evaluated the effectiveness of the design and
operation of our disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) as of July 31, 2007. Our disclosure controls and
procedures are designed to ensure that information required to be disclosed in
reports filed under the Securities Exchange Act of 1934 is recorded, processed,
summarized, and reported as specified in the Securities and Exchange
Commission's rules and forms. Based on this evaluation, our President, Chief
Executive Officer, and Interim Chief Financial Officer concluded that our
disclosure controls and procedures, were effective as of October 31, 2007.

     (b)  Change in Internal Controls
          ---------------------------

          There were no changes in our internal control over financial reporting
during the quarter ended October 31, 2007, that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.





                                       20
<PAGE>
                           PART II - OTHER INFORMATION
                           ---------------------------

Item 1.     Legal Proceedings

     See Note 9 to the accompanying unaudited condensed consolidated financial
statements in Part I of this Quarterly Report on Form 10-Q.

Item 1A.     Risk Factors

     There have been no material changes with respect to the risk factors
disclosed in our Annual Report on Form 10-K for the fiscal year ended July 31,
2007.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

     None

Item 4.     Submission of Matters to a Vote of Security Holders

     None

Item 5.     Changes in Registrant's Certifying Accountant

     None.

Item 6.     Exhibits

31.1 Certification by the Principal Executive and interim Chief Financial
     Officer of Competitive Technologies, Inc. pursuant to Section 302 of the
     Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).

32.1 Certification by the Principal Executive and interim Chief Financial
     Officer of Competitive Technologies, Inc. pursuant to Section 906 of the
     Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) (furnished herewith).

                                       21
<PAGE>



                                   SIGNATURES
                                   ----------

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                              COMPETITIVE TECHNOLOGIES, INC.
                              (the registrant)

                              By /s/ John B. Nano.
                              --------------------
                              John B. Nano
                              Chairman, President, Chief Executive Officer,
                              Interim Chief Financial Officer, Chief Accounting
                              Officer and Authorized Signer

December 13, 2007



                                       22
<PAGE>
                                INDEX TO EXHIBITS


Exhibit No.     Description
-----------     -----------


31.1 Certification by the Principal Executive and Interim Chief Financial
     Officer of Competitive Technologies, Inc. pursuant to Section 302 of the
     Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).

32.1 Certification by the Principal Executive and Interim Chief Financial
     Officer of Competitive Technologies, Inc. pursuant to Section 906 of the
     Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) (furnished herewith).

























                                    AMERICAN
                                 STOCK EXCHANGE
                                     LISTED
                                       CTT

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