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Welfare Impacts of Intellectual Property Protection in the Seed Industry

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Author Info
Sergio H. Lence
Dermot J. Hayes
Alan McCunn
Stephen Smith
William S. Niebur

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Abstract

We examine the welfare impact of different intellectual property protection (IPP) regimes in private sector seed research and development (R&D). We take into account the period after expiration of legal IPP, and require simultaneous equilibrium in markets for R&D, seeds, and final product. Optimal IPP is remarkably insensitive to alternative parameterizations, except for R&D productivity. Results suggest that optimal IPP is greater than IPP in the U.S. seed corn market, but lower than the IPP that could be attained with genetic use restriction technologies. Optimal IPP is much higher than IPP achieved under open-pollinated crops or where legal IPP is limited. Copyright 2005 American Agricultural Economics Association.

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Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 87 (2005)
Issue (Month): 4 (November)
Pages: 951-968
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Handle: RePEc:bla:ajagec:v:87:y:2005:i:4:p:951-968

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  1. Khachaturyan, Marianna & Yiannaka, Amalia, 2006. "The Market Acceptance and Welfare Impacts of Genetic Use Restriction Technologies (GURTs)," 2006 Annual meeting, July 23-26, Long Beach, CA 21329, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Ambec, Stefan & Langinier, Corinne & Lemarie, Stephane, 2006. "Incentive to Reduce Crop Trait Durability," Staff General Research Papers 12525, Iowa State University, Department of Economics. [Downloadable!]
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  3. Eaton, Derek & Tripp, Rob & Louwaars, Niels, 2006. "The Effects of Strengthened IPR Regimes on the Plant Breeding Sector in Developing Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25455, International Association of Agricultural Economists. [Downloadable!]
  4. Lence, Sergio H. & Hayes, Dermot J., 2007. "Welfare Impacts of Cross-Country Spillovers in Agricultural Research," Staff General Research Papers 12801, Iowa State University, Department of Economics. [Downloadable!]
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