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Plant Breeders’ Rights, Patents, and Incentives to Innovate

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  • Hervouet, Adrien
  • Langinier, Corinne

Abstract

Both patents and Plant Breeders’ Rights (PBRs) can protect plant innovations. Unlike patents, PBRs allow farmers to save part of their harvest to replant. We analyze the impact of this exemption on prices and innovation in a monopoly setting. In a PBR regime, a monopolist might let farmers self-produce, and he over- or under-invests compared to socially optimal investments. Under a PBR and patent regime, large (small) innovations are more likely to be patented (protected with PBRs), but self-production is not completely prevented, private investments are often socially optimal, and incentives to innovate are boosted. However, overall effects on welfare are ambiguous.

Suggested Citation

  • Hervouet, Adrien & Langinier, Corinne, 2018. "Plant Breeders’ Rights, Patents, and Incentives to Innovate," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(1), January.
    • Handle: RePEc:ags:jlaare:267613
    DOI: 10.22004/ag.econ.267613
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    Cited by:

    1. Adrien Hervouet & Stéphane Lemarié, 2023. "The Economics of Royalty Rates in Plant Breeding," Working Papers 2023-03, Grenoble Applied Economics Laboratory (GAEL).
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    3. Mehdi Arzandeh & Derek G. Brewin, 2021. "R&D Investments in Plant Breeding under Changing Intellectual Property Rights," International Journal of Economics and Financial Issues, Econjournals, vol. 11(6), pages 32-47.

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    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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