R&D Spillovers: Evidence from U.S. Food Processing, Farm Machinery and Agriculture
AbstractThis paper focuses on the private and social rates of return to R&D capital in the three vertically linked sectors, primary agriculture, food processing, and farm machinery and equipment. Evidence supporting a divergence between these rates is found for primary agriculture and food processing. Using a cost function approach, the private rates of return to R&D capital ranged from an average of 10.2% per annum for food processing to 22.3% for farm machinery and equipment. In the case of agriculture, the direct return to public R&D averaged 37.3% per annum. The social rates of return to R&D capital in agriculture and food processing are significantly larger than the private rates due to the existence of spillovers. While the divergence between rates is small in the farm machinery and equipment sector, its high direct rate may suggest relatively large intra-sector spillovers. We find that spillovers from public agricultural R&D to food processing exceeds the spillovers from food processing to the other two sectors. Thus, to a degree, public R&D in agriculture mitigates the market's failure in food processing to fully appropriate the returns to their R&D capital.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Minnesota, Economic Development Center in its series Bulletins with number 7504.
Date of creation: 1996
Date of revision:
Contact details of provider:
Postal: 231ClaOff Building, 1994 Buford Avenue, St. Paul, MN 55108-6040
Phone: (612) 625-1222
Fax: (612) 625-6245
Web page: http://www.apec.umn.edu/EDC.html
More information through EDIRC
Research and Development/Tech Change/Emerging Technologies; 013; 032; Q16;
Find related papers by JEL classification:
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hall, Bronwyn H., 1993.
"Industrial Research During the 1980s: Did the Rate of Return Fall?,"
Department of Economics, Working Paper Series
qt33d879r9, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Bronwyn H. Hall., 1993. "Industrial Research During the 1980s: Did the Rate of Return Fall?," Economics Working Papers 93-217, University of California at Berkeley.
- Diao, Xinshen & Elbasha, Elamin H. & Roe, Terry L. & Yeldan, A. Erinc, 1996. "A Dynamic CGE Model: An Application of R&D- Based Endogenous Growth Model Theory," Bulletins 7461, University of Minnesota, Economic Development Center.
- Backus, David K. & Kehoe, Patrick J. & Kehoe, Timothy J., 1992.
"In search of scale effects in trade and growth,"
Journal of Economic Theory,
Elsevier, vol. 58(2), pages 377-409, December.
- Romer, Paul M, 1990.
"Endogenous Technological Change,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages S71-102, October.
- Bernstein, Jeffrey I & Nadiri, M Ishaq, 1988.
"Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries,"
American Economic Review,
American Economic Association, vol. 78(2), pages 429-34, May.
- Jeffrey Bernstein & Ishaq Nadiri, 1988. "Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries," Carleton Industrial Organization Research Unit (CIORU) 88-01, Carleton University, Department of Economics.
- Jeffrey I. Bernstein & M. Ishaq Nadiri, 1988. "Interindustry R&D Spillovers, Rates Of Return, and Production In High-Tech Industries," NBER Working Papers 2554, National Bureau of Economic Research, Inc.
- Perloff, Jeffrey M, 1991. "Econometric analysis of imperfect competition and implications for trade research," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt46w1j22d, Department of Agricultural & Resource Economics, UC Berkeley.
- Mansfield, Edwin, 1983. "Technological Change and Market Structure: An Empirical Study," American Economic Review, American Economic Association, vol. 73(2), pages 205-09, May.
- Mohtadi, Hamid & Roe, Terry L., 1991. "Political Economy of Endogenous Growth (Revised)," Bulletins 7502, University of Minnesota, Economic Development Center.
- Munisamy Gopinath & Terry L. Roe & Mathew D. Shane, 1996. "Competitiveness of U.S. Food Processing: Benefits from Primary Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1044-1055.
- Roe, Terry L. & Mohtadi, Hamid, 1999. "International Trade And Growth: An Overview From The Perspective Of The New Growth Theory," 1999 Annual meeting, August 8-11, Nashville, TN 21536, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Venturini, Luciano, 2006. "Vertical competition between manufacturers and retailers and upstream incentives to innovate and differentiate," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10050, European Association of Agricultural Economists.
- Heisey, Paul W. & King, John L. & Day-Rubenstein, Kelly A. & Bucks, Dale A. & Welsh, Rick, 2010. "Assessing the Benefits of Public Research Within an Economic Framework: The Case of USDA's Agricultural Research Service," Economic Research Report 94852, United States Department of Agriculture, Economic Research Service.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.