IDEAS home Printed from https://ideas.repec.org/a/bpj/bjafio/v3y2005i2n1.html
   My bibliography  Save this article

On Cyclical Industry Evolution in Agricultural Biotechnology R&D

Author

Listed:
  • Oehmke James F

    (Michigan State University)

  • Wolf Christopher A

    (Michigan State University)

  • Raper Kellie Curry

    (Michigan State University)

Abstract

Over the past twenty years, the R&D-based agricultural biotechnology industry has exhibited cyclical behavior in consolidation. This paper provides a positive, theoretical model of endogenous R&D, in which the number of firms engaged in R&D exhibits cyclical behavior. Additional, empirically testable, behavioral characteristics of the model cycle include: the level of R&D activity is pro-cyclical, mergers and acquisitions activity and the time to discovery of the next innovation are counter-cyclical, and the duration of cyclic peaks (periods of high firm numbers) is short relative to periods of low firm numbers. The implication that the distribution of firm numbers over time is multi-modal is consistent with empirical evidence and is in contrast to studies of firm numbers in other industries. One policy implication is that anti-trust actions in agricultural biotechnology should be based on observed persistent, rather than cyclic, concentration.

Suggested Citation

  • Oehmke James F & Wolf Christopher A & Raper Kellie Curry, 2005. "On Cyclical Industry Evolution in Agricultural Biotechnology R&D," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(2), pages 1-27, March.
    • Handle: RePEc:bpj:bjafio:v:3:y:2005:i:2:n:1
    DOI: 10.2202/1542-0485.1107
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1542-0485.1107
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1542-0485.1107?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Oehmke, James F. & Wolf, Christopher A., 2004. "Is Monsanto Leaving Money on the Table? Monopoly Pricing and Bt Cotton Value with Heterogeneous Adopters," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(3), pages 1-14, December.
    2. Ewald Walterskirchen & et al., 1998. "Exportgetragenes Wirtschaftswachstum. Österreichs Wirtschaft im Jahr 1997," WIFO Monatsberichte (monthly reports), WIFO, vol. 71(4), pages 239-280, April.
    3. Segerstrom, Paul S, 1991. "Innovation, Imitation, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 807-827, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grace Li Ann Yong & Kong Weng Ho, 2006. "Innovation, Imitation And Entrepreneurship," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 51(02), pages 147-173.
    2. Kerekes, Monika, 2007. "Analyzing patterns of economic growth: a production frontier approach," Discussion Papers 2007/15, Free University Berlin, School of Business & Economics.
    3. Yang, Guifang & Maskus, Keith E., 2001. "Intellectual property rights, licensing, and innovation in an endogenous product-cycle model," Journal of International Economics, Elsevier, vol. 53(1), pages 169-187, February.
    4. Liu, Baohua & Huang, Dan & Chen, Tao & Chan, Kam C., 2023. "Mandatory R&D disclosure and analyst forecast Accuracy: Evidence from an emerging market," Journal of Contemporary Accounting and Economics, Elsevier, vol. 19(3).
    5. Stefan Wrzaczek, 2014. "Social optimality in the constructed-capital model," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 22(1), pages 211-232, March.
    6. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    7. Dhanora, Madan & Sharma, Ruchi & Khachoo, Qayoom, 2018. "Non-linear impact of product and process innovations on market power: A theoretical and empirical investigation," Economic Modelling, Elsevier, vol. 70(C), pages 67-77.
    8. Mabrouki, Mohamed, 2018. "Le brevet : un instrument efficace pour promouvoir l’innovation au profit de la croissance ou un mal nécessaire ? [Patent: an effective instrument to promote innovation for the benefit of growth or," MPRA Paper 85752, University Library of Munich, Germany.
    9. Micco, Alejandro & Pérez, Natalia, 2002. "Determinants of Maritime Transport Costs," IDB Publications (Working Papers) 3700, Inter-American Development Bank.
    10. Mastromarco Camilla & Laura Serlenga & Yongcheol Shin, 2013. "Globalisation and technological convergence in the EU," Journal of Productivity Analysis, Springer, vol. 40(1), pages 15-29, August.
    11. Ayyagari, Meghana & Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2010. "Are innovating firms victims or perpetrators ? tax evasion, bribe payments, and the role of external finance in developing countries," Policy Research Working Paper Series 5389, The World Bank.
    12. Ricardo Hausmann & Bailey Klinger, 2007. "The Structure of the Product Space and the Evolution of Comparative Advantage," Growth Lab Working Papers 10, Harvard's Growth Lab.
    13. Amy Glass, 1999. "Substitution and Returns to Scale in R&D," Working Papers 99-12, Ohio State University, Department of Economics.
    14. Seema Sharma & V. J. Thomas, 2008. "Inter-country R&D efficiency analysis: An application of data envelopment analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 76(3), pages 483-501, September.
    15. Tiffany Shih & Brian Wright, 2011. "Agricultural Innovation," NBER Chapters, in: Accelerating Energy Innovation: Insights from Multiple Sectors, pages 49-85, National Bureau of Economic Research, Inc.
    16. Silvia Galli, 2006. "Patents and Research Tools in a Schumpeterian Growth Model with Sequential Innovation," Rivista di Politica Economica, SIPI Spa, vol. 96(6), pages 63-104, November-.
    17. Benhabib, Jess & Spiegel, Mark M., 2005. "Human Capital and Technology Diffusion," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 13, pages 935-966, Elsevier.
    18. Guifang Yang & Maskus, Keith E., 2003. "Intellectual property rights, licensing, and innovation," Policy Research Working Paper Series 2973, The World Bank.
    19. Ricardo Hausmann & Bailey Klinger, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," CID Working Papers 128, Center for International Development at Harvard University.
    20. Jonathan Eaton & Samuel Kortum, 1994. "International patenting and technology diffusion," Finance and Economics Discussion Series 94-35, Board of Governors of the Federal Reserve System (U.S.).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bjafio:v:3:y:2005:i:2:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.