Measuring the benefits from R&D investment beyond the farm gate: the case of the WA wine industry
AbstractEvaluations of public sector agricultural research and development (R&D) often focus on farm level benefits. Flow-on benefits that accrue to other sectors such as processing and marketing typically are ignored. This paper however includes these benefits. Using the Western Australian wine industry as an example this paper highlights the relative importance of farm and flow-on benefits generated by farm-level R&D. A wine industry value chain model is used to measure these benefits. The benefits per dollar of R&D investment are found to be $2.8 at the farm level compared to $14.9 when flow-on benefits are taken into account. In this case, solely reporting farm level benefits hugely understates the returns to the R&D investment. The R&D policy implications of the inclusion of flow-on benefits are discussed briefly.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 48169.
Date of creation: 2009
Date of revision:
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Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
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More information through EDIRC
R&D investment; Benefit cost analysis; Value chain modelling; wine.;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-28 (All new papers)
- NEP-INO-2009-03-28 (Innovation)
- NEP-TID-2009-03-28 (Technology & Industrial Dynamics)
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