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Intellectual property rights, private investment in research, and productivity growth in Indian agriculture: A review of evidence and options

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Author Info

  • Kolady, Deepthi
  • Spielman, David J.
  • Cavalieri, Anthony J.

Abstract

With the growth of private investment in developing-country agriculture, new advances in the biological sciences, and rapid integration of developing countries into the global trading system, intellectual property rights (IPRs) have become an important concern for policymakers, corporate decisionmakers, and many other players in the agricultural sector. But there are still unanswered questions about whether emerging and evolving IPR regimes in developing countries will contribute to increasing agricultural productivity and improving food security. This paper attempts to answer some of these questions by tracing the effects of IPRs on private investment in crop genetic improvement and, in turn, on agricultural productivity. The paper focuses specifically on the case of India, the regional leader in implementing IPRs in agriculture. Findings indicate that maize and pearl millet yields grew significantly during the last two decades due to the combination of (1) public policies that encouraged private investment in India's seed industry during the 1980s, (2) public investment in hybrid breeding programs that generated new materials offering substantial yield gains, and (3) biological IPRs conferred by hybridization that conveniently married the private sector's need for appropriability with the nation's need for productivity growth. Although past lessons are not an indication of future success, this convergence of policy solutions and technology opportunities can be replicated for other crops that are vital to India's food security.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1031.

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Date of creation: 2010
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Handle: RePEc:fpr:ifprid:1031

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Keywords: Agricultural productivity; agricultural research and development; food security; Intellectual property rights;

References

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  1. Eaton, Derek J.F. & Tripp, Robert & Louwaars, Niels P., 2006. "The Effects of Strengthened IPR Regimes on the Plant Breeding Sector in Developing Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25455, International Association of Agricultural Economists.
  2. Carew, Richard & Smith, Elwin G. & Grant, Cynthia, 2009. "Factors Influencing Wheat Yield and Variability: Evidence from Manitoba, Canada," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(03), December.
  3. Moschini, GianCarlo & Yerokhin, Oleg, 2007. "Economics Incentive to Innovate in Plants: Patents and Plant Breeders' Rights, The," Staff General Research Papers 12895, Iowa State University, Department of Economics.
  4. Joshi, P.K. & Singh, N.P. & Singh, N.N. & Gerpacio, Roberta V. & Pingali, Prabhu L., 2005. "Maize in India: Production Systems, Constraints, and Research Priorities," Maize Production Systems Papers 7646, CIMMYT: International Maize and Wheat Improvement Center.
  5. 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.
  6. Deepthi Elizabeth Kolady & William Lesser, 2009. "But are they Meritorious? Genetic Productivity Gains under Plant Intellectual Property Rights," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 62-79.
  7. Gerpacio, R. V., 2003. "The roles of public sector versus private sector in R&D and technology generation: the case of maize in Asia," Agricultural Economics, Blackwell, vol. 29(3), pages 319-330, December.
  8. Tripp, Robert & Louwaars, Niels & Eaton, Derek, 2007. "Plant variety protection in developing countries. A report from the field," Food Policy, Elsevier, vol. 32(3), pages 354-371, June.
  9. Pray, Carl E. & Ramaswami, Bharat, 1999. "Liberalization'S Impact On The Indian Seed Industry: Competition, Research, And Impact On Farmers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 2(03/04).
  10. Pray, Carl E. & Ramaswami, Bharat & Kelley, Timothy, 2001. "The impact of economic reforms on R&D by the Indian seed industry," Food Policy, Elsevier, vol. 26(6), pages 587-598, December.
  11. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
  12. Spielman, David J. & Pandya-Lorch, Rajul, 2009. "Highlights from millions fed: Proven successes in agricultural development," IFPRI books, International Food Policy Research Institute (IFPRI), number Millions Fed Booklet: 200.
  13. Spielman, David J. & Pandya-Lorch, Rajul, 2009. "Highlights from millions fed: Proven successes in agricultural development [In Chinese]," IFPRI books, International Food Policy Research Institute (IFPRI), number Millions Fed Booklet [Chi.
  14. Alston, Julian M. & Venner, Raymond J., 2002. "The effects of the US Plant Variety Protection Act on wheat genetic improvement," Research Policy, Elsevier, vol. 31(4), pages 527-542, May.
  15. Pray, Carl E. & Ribeiro, Sharmila & Mueller, Rolf A. E. & Rao, P. Parthasarathy, 1991. "Private research and public benefit: The private seed industry for sorghum and pearl millet in India," Research Policy, Elsevier, vol. 20(4), pages 315-324, August.
  16. Spielman, David J. & Pandya-Lorch, Rajul, 2009. "Millions fed: Proven successes in agricultural development," IFPRI books, International Food Policy Research Institute (IFPRI), number Millions Fed Book: 2009.
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Cited by:
  1. Spielman, David J. & Kolady, Deepthi E. & Cavalieri, Anthony & Rao, N. Chandrasekhara, 2014. "The seed and agricultural biotechnology industries in India: An analysis of industry structure, competition, and policy options," Food Policy, Elsevier, vol. 45(C), pages 88-100.
  2. Shreedhar, Ganga & Gupta, Neelmani & Pullabhotla, Hemant & Ganesh-Kumar, A. & Gulati, Ashok, 2012. "A review of input and output policies for cereals production in India:," IFPRI discussion papers 1159, International Food Policy Research Institute (IFPRI).
  3. Clarisse Nguedam Ntouko, 2013. "Regulatory Framework and Private Investment: Empirical Evidence for Developing Countries," Economics Bulletin, AccessEcon, vol. 33(1), pages 494-510.

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