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Privatization, Public R&D Policy, and Private R&D Investment in China's Agriculture

Author

Listed:
  • Hu, Ruifa
  • Liang, Qin
  • Pray, Carl E.
  • Huang, Jikun
  • Jin, Yanhong H.

Abstract

Private R&D is a major source of innovation and productivity growth in agriculture worldwide. This paper examines trends and determinants of agricultural R&D in China. Results show that while the public sector monopolized agricultural research until recently, private agricultural R&D has grown rapidly since 2000, driven largely by agribusiness privatization. Public-sector R&D investments in basic research also encouraged private R&D research, but public investments in technology development crowded out private R&D investment. China’s private R&D investment would grow more rapidly if the government shifted public resources from technology development to basic research.

Suggested Citation

  • Hu, Ruifa & Liang, Qin & Pray, Carl E. & Huang, Jikun & Jin, Yanhong H., 2011. "Privatization, Public R&D Policy, and Private R&D Investment in China's Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-17, August.
    • Handle: RePEc:ags:jlaare:117213
    DOI: 10.22004/ag.econ.117213
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    References listed on IDEAS

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    Cited by:

    1. Min, Xinyuan & Sok, Jaap & Qian, Tian & Zhou, Weihao & Oude Lansink, Alfons, 2025. "Evaluating the adoption of sensor and robotic technologies from a multi-stakeholder perspective: The case of greenhouse sector in China," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    2. Haiyan Deng & Ruifa Hu & Carl Pray & Yanhong Jin & Zhonghua Li, 2020. "Determinants of Firm‐Level Lobbying and Government Responsiveness in Agricultural Biotechnology in China," Review of Policy Research, Policy Studies Organization, vol. 37(2), pages 201-220, March.
    3. Deng, Haiyan & Jin, Yanhong & Pray, Carl & Hu, Ruifa & Xia, Enjun & Meng, Hong, 2021. "Impact of public research and development and extension on agricultural productivity in China from 1990 to 2013," China Economic Review, Elsevier, vol. 70(C).
    4. Gregory D. Graff & Felipe de Figueiredo Silva & David Zilberman, 2020. "Venture Capital and the Transformation of Private R&D for Agriculture," NBER Chapters, in: Economics of Research and Innovation in Agriculture, pages 213-245, National Bureau of Economic Research, Inc.
    5. Jintao Zhan & Yubei Ma & Wuyang Hu & Chao Chen & Qinan Lu, 2022. "Enhancing rural income through public agricultural R&D: Spatial spillover and infrastructure thresholds," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 1083-1107, May.
    6. Chai, Yuan & Pardey, Philip G. & Chan-Kang, Connie & Huang, Jikun & Lee, Kyuseon & Dong, Wanlu, 2019. "Passing the food and agricultural R&D buck? The United States and China," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    7. Bo Yao & Fangbin Qiao, 2023. "The Heterogeneous Effects of Central and Local Subsidies on Firms’ Innovation," Sustainability, MDPI, vol. 15(2), pages 1-15, January.
    8. Ruifa Hu & Changxin Yu & Yanhong Jin & Carl Pray & Haiyan Deng, 2022. "Impact of Government Policies on Research and Development (R&D) Investment, Innovation, and Productivity: Evidence from Pesticide Firms in China," Agriculture, MDPI, vol. 12(5), pages 1-16, May.
    9. Liu, Dan & Liu, Yaru & Jin, Yanhong & Deng, Haiyan, 2025. "Climate-Induced Innovation in China’s Crop Seed Industry: Evidence from Firm-Level Data," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361183, Agricultural and Applied Economics Association.

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