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Foreign Direct Investment, Spillovers and the Impact of Intellectual Property: Rights in the Seed Sector

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  • Derwisch, Sebastian
  • Kopainsky, Birgit
  • Henson-Apollonio, Victoria
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    Abstract

    The role of foreign direct investment and intellectual property rights in economic development is discussed widely in the literature. However, an integrating framework is missing to assess the role of FDI and IPR for agricultural development. This paper establishes a framework to assess the role of FDI and IPR for seed sector development in developing countries. The impact assessment is carried out with a System Dynamics model that shows local capacity development to develop new seed varieties in the scenario of a multinational company penetrating the market and spillovers occurring. Simulation runs reveal the impact of IPR on the quantity technology transferred by multinational companies and on spillovers. The development path of the local industry depends crucially on the capacity of the local seed sector when the multinational company enters. A pattern for seed sector development is derived.

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    Bibliographic Info

    Paper provided by International European Forum on Innovation and System Dynamics in Food Networks in its series 2010 Internatonal European Forum, February 8-12, 2010, Innsbruck-Igls, Austria with number 100463.

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    Date of creation: Oct 2010
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    Handle: RePEc:ags:iefi10:100463

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    Web page: http://www.fooddynamics.org/

    Related research

    Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Farm Management; Food Consumption/Nutrition/Food Safety; Production Economics; Research Methods/ Statistical Methods;

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    1. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
    2. Srinivasan, C. S., 2003. "Concentration in ownership of plant variety rights: some implications for developing countries," Food Policy, Elsevier, vol. 28(5-6), pages 519-546.
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