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Dynamic implications of patenting for crop genetic resources:

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  • Koo, Bonwoo
  • Wright, Brian D.

Abstract

In a climate of rapid technological change, it is important to evaluate policies on the innovation incentives that result from the introduction of intellectual property rights as they relate to agricultural genetic resources. In this paper, we use a stylized model of cumulative innovation to explore the dynamics of introducing patent protection with licensing agreements, and then we contrast those results with the comparative-statics viewpoint. We also investigate the dynamic effects of claims on behalf of farmers on the profits of private crop breeders whose output is newly protected by patents. We show that the choices about patent life and licensing share that optimize worldwide dynamic social welfare can be quite different from the values that maximize steady-state social welfare. Further, recognition of farmers' rights entails a dynamic welfare loss to producers and consumers that is not revealed in a comparative-statics analysis.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series EPTD discussion papers with number 51.

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Date of creation: 1999
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Handle: RePEc:fpr:eptddp:51

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Keywords: Plant breeding Technological innovations.; Plant genetic engineering Economic aspects.; Intellectual property.;

References

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  1. Suzanne Scotchmer, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter.
  2. Carmen Matutes & Pierre Regibeau & Katharine Rockett, 1996. "Optimal Patent Design and the Diffusion of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 60-83, Spring.
  3. Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders in the Theory of Growth," Review of Economic Studies, Wiley Blackwell, vol. 58(1), pages 43-61, January.
  4. Richard Gilbert & Carl Shapiro, 1990. "Optimal Patent Length and Breadth," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 106-112, Spring.
  5. Paul Klemperer, 1990. "How Broad Should the Scope of Patent Protection Be?," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 113-130, Spring.
  6. Chou, T. & Haller, H., 1995. "The Division of Profit in Sequential Innovation Reconsidered," Discussion Paper 1995-64, Tilburg University, Center for Economic Research.
  7. Ted O'Donoghue & Suzanne Scotchmer & Jacques-François Thisse, 1998. "Patent Breadth, Patent Life, and the Pace of Technological Progress," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(1), pages 1-32, 03.
  8. Howard F. Chang, 1995. "Patent Scope, Antitrust Policy, and Cumulative Innovation," RAND Journal of Economics, The RAND Corporation, vol. 26(1), pages 34-57, Spring.
  9. Horowitz, Andrew W & Lai, Edwin L-C, 1996. "Patent Length and the Rate of Innovation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 785-801, November.
  10. Glenn C. Loury, 1976. "Market Structure and Innovation," Discussion Papers 256, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  11. Suzanne Scotchmer, 1996. "Protecting Early Innovators: Should Second-Generation Products Be Patentable?," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 322-331, Summer.
  12. Haller, H. & Chou, T., 1995. "The Division of Profit in Sequential Innovation Reconsidered," Papers 9564, Tilburg - Center for Economic Research.
  13. Lee, Tom & Wilde, Louis L, 1980. "Market Structure and Innovation: A Reformulation," The Quarterly Journal of Economics, MIT Press, vol. 94(2), pages 429-36, March.
  14. Wright, Brian D., 1997. "Crop genetic resource policy: the role of ex situ genebanks," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(1), March.
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Cited by:
  1. Roberto ESPOSTI, 2003. "Complementarita' innovative e tragedia degli anticommons. Il caso delle agrobiotecnologie," Working Papers 198, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

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