IDEAS home Printed from https://ideas.repec.org/p/ags/uerser/262031.html
   My bibliography  Save this paper

Agricultural Research and Development: Public and Private Investments Under Alternative Markets and Institutions

Author

Listed:
  • Fuglie, Keith
  • Ballenger, Nicole
  • Rubenstein, Kelly Day
  • Klotz, Cassandra
  • Ollinger, Michael
  • Reilly, John
  • Vasavada, Utpal
  • Yee, Jet

Abstract

mpirical studies indicate high economic returns from the public's investment in agricultural research. Yet, even as society is placing broader demands on the research system, taxpayer support for public agricultural research is unlikely to increase. Stronger ownership rights for intellectual property have increased incentives for private investment in agricultural research, but key elements still require direct public support. The USDA is developing new mechanisms to build a more effective public-private partnership in agricultural research.

Suggested Citation

  • Fuglie, Keith & Ballenger, Nicole & Rubenstein, Kelly Day & Klotz, Cassandra & Ollinger, Michael & Reilly, John & Vasavada, Utpal & Yee, Jet, 1996. "Agricultural Research and Development: Public and Private Investments Under Alternative Markets and Institutions," Agricultural Economic Reports 262031, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:262031
    DOI: 10.22004/ag.econ.262031
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/262031/files/AER-735.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/262031/files/AER-735.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.262031?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lyu, Syu-Jyun Larry & White, Fred C. & Lu, Yao-Chi, 1984. "Estimating Effects of Agricultural Research and Extension Expenditures on Productivity: A Translog Production Function Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 1-8, December.
    2. Ollinger, Michael & Fernandez-Cornejo, Jorge, 1998. "Innovation and Regulation in the Pesticide Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 15-27, April.
    3. Kislev, Yoav & Peterson, Willis, 1982. "Prices, Technology, and Farm Size," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 578-595, June.
    4. Oehmke, James F., 1988. "The calculation of returns to research in distorted markets," Agricultural Economics, Blackwell, vol. 2(4), pages 291-302, December.
    5. Chambers, Robert G. & Lopez, Ramon, 1993. "Public investment and real-price supports," Journal of Public Economics, Elsevier, vol. 52(1), pages 73-82, August.
    6. Lu, Yao-chi & Quance, Leroy & Liu, Chun-lan, 1978. "Projecting Agricultural Productivity And Its Economic Impact," 1978 Annual Meeting, August 6-9, Blacksburg, Virginia 283557, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. D. Schimmelpfennig & C. Thirtle, 1994. "Cointegration, And Causality: Exploring The Relationship Between Agricultural And Productivity," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 220-231, May.
    8. Norton, George W., 1981. "The Productivity and Allocation of Research: U.S. Agricultural Experiment Stations, Revisited," Evaluation of Agricultural Research, Proceedings of a Workshop, Minneapolis, MN, May 12-13, 1980, Miscellaneous Publication 8 49053, University of Minnesota, Agricultural Experiment Station.
    9. Thirtle, Colin G., 1985. "Technological Change and the Productivity Slowdown in Field Crops: United States, 1939-78," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(2), pages 33-42, December.
    10. Wallace E. Huffman & Richard E. Just, 1994. "Funding, Structure, and Management of Public Agricultural Research in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 744-759.
    11. Wallace E. Huffman & Robert E. Evenson, 1989. "Supply and Demand Functions for Multiproduct U.S. Cash Grain Farms: Biases Caused by Research and Other Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 761-773.
    12. Khanna, Jyoti & Huffman, Wallace E & Sandler, Todd, 1994. "Agricultural Research Expenditures in the United States: A Public Goods Perspective," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 267-277, May.
    13. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    14. KELLY A. Day & GEORGE B. Frisvold, 1993. "Medical Research And Genetic Resources Management: The Case Of Taxol," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 1-11, July.
    15. Reilly, John M., 1989. "Consumer Effects of Biotechnology," Agricultural Information Bulletins 309519, United States Department of Agriculture, Economic Research Service.
    16. Klotz, Cassandra & Fuglie, Keith & Pray, Carl, 1995. "Private-Sector Agricultural Research Expenditures in the United States, 1960-92," Staff Reports 278794, United States Department of Agriculture, Economic Research Service.
    17. Gary A. Zarkin & Donald W. Anderson, 1992. "Consumer and Producer Responses to Nutrition Label Changes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1202-1207.
    18. Kitch, Edmund W, 1977. "The Nature and Function of the Patent System," Journal of Law and Economics, University of Chicago Press, vol. 20(2), pages 265-290, October.
    19. Andrew Schmitz & David Seckler, 1970. "Mechanized Agriculture and Social Welfare: The Case of the Tomato Harvester," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(4), pages 569-577.
    20. Norton, George W. & Davis, Jeffrey S., 1979. "Review Of Methods Used To Evaluate Returns To Agricultural Research," Staff Papers 13520, University of Minnesota, Department of Applied Economics.
    21. Lyu, Syu-Jyun Larry & White, Fred C. & Lu, Yao-Chi, 1984. "Estimating Effects Of Agricultural Research And Extension Expenditures On Productivity: A Translog Production Function Approach," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(2), pages 1-8, December.
    22. George W. Norton & Jeffrey S. Davis, 1981. "Evaluating Returns to Agricultural Research: A Review," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 685-699.
    23. Julian M. Alston & Geoff W. Edwards & Professor John W. Freebairn, 1988. "Market Distortions and Benefits from Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 281-288.
    24. Dalrymple, Dana G., 1980. "Development and Spread of Semi-Dwarf Varieties of Wheat and Rice in the United States: An International Perspective," Agricultural Economic Reports 307884, United States Department of Agriculture, Economic Research Service.
    25. Edwin Mansfield, 1986. "Patents and Innovation: An Empirical Study," Management Science, INFORMS, vol. 32(2), pages 173-181, February.
    26. Tandon, Pankaj, 1982. "Optimal Patents with Compulsory Licensing," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 470-486, June.
    27. Glenn Fox, 1985. "Is the United States Really Underinvesting in Agricultural Research?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 806-812.
    28. Vernon W. Ruttan, 1971. "Technology and the Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(5), pages 707-717.
    29. James F. Oehmke, 1988. "The Calculation of Returns to Research in Distorted Markets," Agricultural Economics, International Association of Agricultural Economists, vol. 2(4), pages 291-302, December.
    30. Wallace E. Huffman, 1976. "The Productive Value of Human Time in U.S. Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(4_Part_1), pages 672-683.
    31. Yao-chi Lu & Leroy Quance & Chun-lan Liu, 1978. "Projecting Agricultural Productivity and Its Economic Impact," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(5), pages 976-980.
    32. Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67, pages 297-297.
    33. Perrin, R.K. & Kunnings, K.A. & Ihnen, L.A., 1983. "Some Effects Of The U.S. Plant Variety Protection Act Of 1970," Department of Economics and Business - Archive 259743, North Carolina State University, Department of Economics.
    34. Olmstead, Alan L & Rhode, Paul, 1993. "Induced Innovation in American Agriculture: A Reconsideration," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 100-118, February.
    35. Austin, David H, 1993. "An Event-Study Approach to Measuring Innovative Output: The Case of Biotechnology," American Economic Review, American Economic Association, vol. 83(2), pages 253-258, May.
    36. Knudson, Mary K. & Ruttan, Vernon W., 1988. "Research and Development of a Biological Innovation: Commercial Hybrid Wheat," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 21(1), pages 1-24.
    37. Philip G. Pardey & Barbara Craig, 1989. "Causal Relationships between Public Sector Agricultural Research Expenditures and Output," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(1), pages 9-19.
    38. Kramer, Carol S., 1990. "Food Safety: The Consumer Side of the Environmental Issue," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(1), pages 33-40, July.
    39. Charles L. Ballard & Don Fullerton, 1992. "Distortionary Taxes and the Provision of Public Goods," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 117-131, Summer.
    40. Kramer, Carol S., 1990. "Food Safety: The Consumer Side Of The Environmental Issue," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(1), pages 1-8, July.
    41. Echeverría, Ruben G., 1990. "Methods for Diagnosing Research System Constraints and Assessing the Impact of Agricultural Research - Volume 1: Diagnosing Agricultural Research System Constraints," ISNAR Archive 310626, CGIAR > International Food Policy Research Institute (IFPRI).
    42. Alvin Ulrich & Hartley Furtan & Andrew Schmitz, 1986. "Public and Private Returns from Joint Venture Research: An Example from Agriculture," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(1), pages 103-129.
    43. Susan M. Capalbo & John M. Antle, 1989. "Incorporating Social Costs in the Returns to Agricultural Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 458-463.
    44. Ollinger, Michael & Pope, Leslie, 1995. "Plant Biotechnology: Out of the Laboratory and into the Field," Agricultural Economic Reports 308418, United States Department of Agriculture, Economic Research Service.
    45. S. Offutt & R. Shoemaker, 1990. "Agricultural Land, Technology And Farm Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 1-8, January.
    46. Wright, Brian Davern, 1983. "The Economics of Invention Incentives: Patents, Prizes, and Research Contracts," American Economic Review, American Economic Association, vol. 73(4), pages 691-707, September.
    47. Thirtle, Colin G., 1985. "Technological Change And The Productivity Slowdown In Field Crops: United States, 1939-78," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-10, December.
    48. Knudson, Mary K., 1990. "The role of the public sector in applied breeding R&D: the case of wheat in the USA," Food Policy, Elsevier, vol. 15(3), pages 209-217, June.
    49. Murphy, John A. & Furtan, W. Hartley & Schmitz, Andrew, 1993. "The gains from agricultural research under distorted trade," Journal of Public Economics, Elsevier, vol. 51(2), pages 161-172, June.
    50. E. Pasour & Marc Johnson, 1982. "Bureaucratic productivity: The case of agricultural research revisited," Public Choice, Springer, vol. 39(2), pages 301-317, January.
    51. Dunham, Denis, 1992. "Food Cost Review, 1991," Agricultural Economic Reports 305728, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Harris & Alan Lloyd, 1991. "The Returns to Agricultural Research and the Underinvestment Hypothesis ‐ A Survey," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 24(3), pages 16-27, July.
    2. Alston, Julian M. & Pardey, Philip G., 2001. "Attribution and other problems in assessing the returns to agricultural R&D," Agricultural Economics, Blackwell, vol. 25(2-3), pages 141-152, September.
    3. Alston, Julian M. & Pardey, Philip G., 2000. "Reassessing Research Returns: Attribution and Related Problems," 2000 Conference, August 13-18, 2000, Berlin, Germany 197205, International Association of Agricultural Economists.
    4. Pardey, Philip G. & Alston, Julian M. & Ruttan, Vernon W., 2010. "The Economics of Innovation and Technical Change in Agriculture," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 939-984, Elsevier.
    5. Alston, Julian M. & Chalfant, James A. & Pardey, Philip G., 1993. "Structural Adjustment In Oecd Agriculture: Government Policies And Technical Change," Working Papers 14473, University of Minnesota, Center for International Food and Agricultural Policy.
    6. Alston, Julian M. & Wyatt, T. J. & Pardey, Philip G. & Marra, Michele C. & Chan-Kang, Connie, 2000. "A meta-analysis of rates of return to agricultural R & D: ex pede Herculem?," Research reports 113, International Food Policy Research Institute (IFPRI).
    7. Thirtle, C. & Bottomley, P., 1988. "Explaining Total Factor Productivity Change: Returns to R & D in U.K. Agricultural Research," Manchester Working Papers in Agricultural Economics 232809, University of Manchester, School of Economics, Agricultural Economics Department.
    8. Frisvold, George B. & Sullivan, John & Raneses, Anton, 2003. "Genetic improvements in major US crops: the size and distribution of benefits," Agricultural Economics, Blackwell, vol. 28(2), pages 109-119, March.
    9. A. C. Herruzo, 1992. "Producer Benefits From Technology Induced Supply Shifts In The Ec Cotton Regime," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(1), pages 56-63, January.
    10. Lee, David R. & Rausser, Gordon C., 1992. "The Structure of Research and Transfer Policies in International Agriculture: Evidence and Implications," 1992 Occasional Paper Series No. 6 197731, International Association of Agricultural Economists.
    11. Wright, Brian D. & Pardey, Philip G. & Nottenburg, Carol & Koo, Bonwoo, 2007. "Agricultural Innovation: Investments and Incentives," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 48, pages 2533-2603, Elsevier.
    12. Radhakrishnan, Manju & Islam, Nazrul & Ward, Glynn, 2009. "Measuring the benefits from R&D investment beyond the farm gate: the case of the WA wine industry," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48169, Australian Agricultural and Resource Economics Society.
    13. Townsend, Rob F. & van Zyl, Johan, 1998. "Estimation of the rate of return to wine grape research and technology development expenditures in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(2), pages 1-22, June.
    14. Penin, Julien, 2005. "Patents versus ex post rewards: A new look," Research Policy, Elsevier, vol. 34(5), pages 641-656, June.
    15. Shujat Ali, 2005. "Total Factor Productivity Growth and Agricultural Research and Extension: An Analysis of Pakistan's Agriculture, 1960-1996," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 729-746.
    16. David Moroz, 2005. "Production of Scientific Knowledge and Radical Uncertainty: The Limits of the Normative Approach in Innovation Economics," European Journal of Law and Economics, Springer, vol. 20(3), pages 305-322, November.
    17. Anja, Breitwieser & Neil, Foster, 2012. "Intellectual property rights, innovation and technology transfer: a survey," MPRA Paper 36094, University Library of Munich, Germany.
    18. Pedro Andres Garzon Delvaux & Heinrich Hockmann & Peter Voigt & Pavel Ciaian & Sergio Gomez y Paloma, 2018. "The impact of private R&D on the performance of food-processing firms: Evidence from Europe, Japan and North America," JRC Research Reports JRC104144, Joint Research Centre (Seville site).
    19. Alejandro Plastina & Lilyan Fulginiti, 2012. "Rates of return to public agricultural research in 48 US states," Journal of Productivity Analysis, Springer, vol. 37(2), pages 95-113, April.
    20. Alston, Julian M. & Marra, Michele C. & Pardey, Philip G. & Wyatt, T.J., 2000. "Research returns redux: a meta-analysis of the returns to agricultural R&D," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), pages 1-31.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uerser:262031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.