IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v86y2019ic9.html
   My bibliography  Save this article

Passing the food and agricultural R&D buck? The United States and China

Author

Listed:
  • Chai, Yuan
  • Pardey, Philip G.
  • Chan-Kang, Connie
  • Huang, Jikun
  • Lee, Kyuseon
  • Dong, Wanlu

Abstract

The global geographical balance of food and agricultural R&D spending is shifting, characterized by a declining U.S. share and a rising middle-income-country share, propelled heavily by the rapid rise of spending in China. Based on our newly compiled data, we estimate that China now outspends the United States on both public and private food and agricultural research on a purchasing power parity basis. The public-private orientation of the research has also changed markedly, with the private sector now accounting for around two-thirds of the food and agricultural R&D spending total in both China and the United States. Our estimates indicate that China’s private sector tilts heavily towards post-farm R&D activities, whereas the U.S. private sector is split more evenly between on-farm and post-farm spending. While the intensity of Chinese investment in food and agricultural R&D (relative to agricultural GDP) is beginning to grow, it still lags well behind the food and agricultural R&D investment intensities of the United States and other higher-income Asian countries (e.g., Japan and South Korea). The development regularities we reveal in the longer-run trends are indicative of future R&D investment patterns with potentially profound long-run implications for the size, shape and accessibility of the global stocks of scientific knowledge that underpin food and agricultural sectors worldwide.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jfpoli:v:86:y:2019:i:c:9
    DOI: 10.1016/j.foodpol.2019.101729
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919218308728
    Download Restriction: Full text for ScienceDirect subscribers only

    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. Fuglie, Keith O. & Heisey, Paul W. & King, John L. & Day-Rubenstein, Kelly & Schimmelpfennig, David & Wang, Sun Ling, 2011. "Research Investments and Market Structure in the Food Processing, Agricultural Input, and Biofuel Industries Worldwide: Executive Summary," Economic Information Bulletin 291936, United States Department of Agriculture, Economic Research Service.
    2. Pray, Carl E. & Fuglie, Keith O. & Johnson, Daniel K.N., 2007. "Private Agricultural Research," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 49, pages 2605-2640, Elsevier.
    3. Li Jiang & Karen C. Seto & Junfei Bai, 2015. "Urban economic development, changes in food consumption patterns and land requirements for food production in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 7(2), pages 240-261, May.
    4. Jun Yang & Huanguang Qiu & Jikun Huang & Scott Rozelle, 2008. "Fighting global food price rises in the developing world: the response of China and its effect on domestic and world markets," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 453-464, November.
    5. Keith O. Fuglie & Andrew A. Toole, 2014. "The Evolving Institutional Structure of Public and Private Agricultural Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(3), pages 862-883.
    6. Philip G. Pardey & Connie Chan-Kang & Jason M. Beddow & Steven P. Dehmer, 2015. "Long-run and Global R&D Funding Trajectories: The U.S. Farm Bill in a Changing Context," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1312-1323.
    7. 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.
    8. Hengyun Ma & Jikun Huang & Frank Fuller & Scott Rozelle, 2006. "Getting Rich and Eating Out: Consumption of Food Away from Home in Urban China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 101-119, March.
    9. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    10. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
    11. Bonwoo Koo & Philip G. Pardey & Keming Qian & Yi Zhang, 2006. "An option perspective on generating and maintaining plant variety rights in China," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 35-48, July.
    12. Pardey, Philip G. & Beddow, Jason M. & Hurley, Terrance M. & Beatty, Timothy K.M. & Eidman, Vernon R., 2014. "A Bounds Analysis of World Food Futures: Global Agriculture Through to 2050," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(4), October.
    13. Fuglie, Keith O. & Heisey, Paul W. & King, John L. & Day-Rubenstein, Kelly A. & Schimmelpfennig, David E. & Wang, Sun Ling, 2011. "Research Investments and Market Structure in the Food Processing, Agricultural Input, and Biofuel Industries Worldwide," Economic Research Report 120324, United States Department of Agriculture, Economic Research Service.
    14. Yiping Huang, 2010. "China's Great Ascendancy and structural risks: consequences of asymmetric market liberalisation," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 24(1), pages 65-85, May.
    15. World Bank, 2015. "World Development Indicators 2015," World Bank Publications, The World Bank, number 21634.
    16. Timmer, C. Peter, 1976. "Food Policy in China," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 15(1), pages 1-18.
    17. Zilberman, David & Lu, Liang & Reardon, Thomas, 2019. "Innovation-induced food supply chain design," Food Policy, Elsevier, vol. 83(C), pages 289-297.
    18. Pray, Carl E. & Fuglie, Keith O., 2001. "Private Investment In Agricultural Research And International Technology Transfer In Asia," Agricultural Economics Reports 33927, United States Department of Agriculture, Economic Research Service.
    19. Chen, Kevin Z. & Flaherty, Kathleen & Zhang, Yumei, 2012. "China: Recent developments in public agricultural research:," ASTI Country Note 127591, International Food Policy Research Institute (IFPRI).
    20. Jikun Huang & Ruifa Hu & Scott Rozelle, 2004. "China's Agricultural Research System and Reforms: Challenges and Implications for Developing Countries," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1), pages 107-123, June.
    21. Nicholas R. Lardy, 2014. "Markets over Mao: The Rise of Private Business in China," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6932.
    Full references (including those not matched with items on IDEAS)

    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:eee:jfpoli:v:86:y:2019:i:c:9. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.