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The Social Value of Biodiversity for R&D

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  • Timo Goeschl
  • Timothy Swanson

Abstract

The value of genetic resources for use in research and development (R&D)activities has been the subject of a literature modelling the activity as onewhere individual firms engage in optimal search. Here we develop a moregeneralised framework in which genetic resources are used in R&D at thebase of an industry that addresses recurring problems of resistance, as inthe pharmaceutical or plant breeding industries. The R&D process is onein which firms are engaging in a continuing contest of innovation againsta background of both creative destruction (Schumpeterian competition) andadaptive destruction (natural selection and adaptation). This frameworkdemonstrates that the search model is conceptually inadequate because itfails to incorporate the important dynamic characteristics of biologicalphenomena. We then demonstrate the important differences between firm-based valuation of genetic resources and the social value of geneticresources for use in this contest of innovation. There are six externalitiesin private patent-based genetic resource valuation, and five of theseindicate that private valuations will under-estimate social values. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Timo Goeschl & Timothy Swanson, 2002. "The Social Value of Biodiversity for R&D," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(4), pages 477-504, August.
    • Handle: RePEc:kap:enreec:v:22:y:2002:i:4:p:477-504
    DOI: 10.1023/A:1019869119754
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    References listed on IDEAS

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    Cited by:

    1. Groth, Christian & Ricci, Francesco, 2011. "Optimal growth when environmental quality is a research asset," Research in Economics, Elsevier, vol. 65(4), pages 340-352, December.
    2. Rupert Gatti & Timo Goeschl & Ben Groom & Timothy Swanson, 2011. "The Biodiversity Bargaining Problem," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(4), pages 609-628, April.
    3. Wenjuan Cheng & Alessio D’Amato & Giacomo Pallante, 2020. "Benefit sharing mechanisms for agricultural genetic diversity use and on-farm conservation," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 337-355, April.
    4. Nicholas Tyack & Milan Scasny, 2018. "Estimating the Value of Crop Diversity Conservation Services Provided by the Czech National Programme for Agrobiodiversity," Working Papers IES 2018/09, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2018.
    5. Lebdioui, Amir, 2022. "Nature-inspired innovation policy: Biomimicry as a pathway to leverage biodiversity for economic development," Ecological Economics, Elsevier, vol. 202(C).
    6. Douglas Gollin, 2020. "Conserving genetic resources for agriculture: economic implications of emerging science," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(5), pages 919-927, October.
    7. Tim Swanson & Ben Groom, 2012. "Regulating global biodiversity: what is the problem?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 28(1), pages 114-138, Spring.
    8. Nicholas Tyack & Milan Ščasný, 2018. "Social Valuation of Genebank Activities: Assessing Public Demand for Genetic Resource Conservation in the Czech Republic," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    9. Damodaran, A., 2009. "Risk management instruments for debt driven conservation efforts: The case of India's Project Tiger," Ecological Economics, Elsevier, vol. 68(3), pages 625-633, January.
    10. Salvatore Di Falco & Jean-Paul Chavas, 2008. "Rainfall Shocks, Resilience, and the Effects of Crop Biodiversity on Agroecosystem Productivity," Land Economics, University of Wisconsin Press, vol. 84(1), pages 83-96.
    11. Kassar, Ilhem & Lasserre, Pierre, 2004. "Species preservation and biodiversity value: a real options approach," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 857-879, September.
    12. Sarr, Mare & Goeschl, Timo & Swanson, Tim, 2008. "The value of conserving genetic resources for R&D: A survey," Ecological Economics, Elsevier, vol. 67(2), pages 184-193, September.
    13. Bartosz Bartkowski & Bernd Hansjürgens & Stefan Möckel & Stephan Bartke, 2018. "Institutional Economics of Agricultural Soil Ecosystem Services," Sustainability, MDPI, vol. 10(7), pages 1-14, July.
    14. Robin Naidoo & Taylor H Ricketts, 2006. "Mapping the Economic Costs and Benefits of Conservation," PLOS Biology, Public Library of Science, vol. 4(11), pages 1-12, October.

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