IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this book chapter or follow this series

Agricultural Innovation: Investments and Incentives

  • Wright, Brian D.
  • Pardey, Philip G.
  • Nottenburg, Carol
  • Koo, Bonwoo

Investments in R&D and agricultural innovations have been fundamental to long-term economic growth worldwide. But global resource allocation has been uneven, with some developing countries closing in on developed-world scientific capacities, others regaining ground lost over the past decade or so, but, unfortunately, many others either stalled or slipping behind. Recently, substantial shifts in the scientific basis for much of biological research have created a new and promising set of opportunities for innovation in agricultural biotechnologies. Moreover, the institutional, regulatory and, especially, intellectual property regimes that affect agricultural R&D are also undergoing rapid change, providing enhanced private incentives for applications of biotechnology in agriculture. But the nature of these developments is raising real concerns about the extent to which developing-country agriculture will be able to partake in the benefits offered by the advances in biotechnology. In this chapter we present an overview of the globally evolving structure of funding and performance of agricultural research. This establishes the special nature of agricultural research as a truly joint endeavor of North and South, and of the public and private sectors. We then sketch the economics of intellectual property protection - highlighting static and dynamic models and the effects of competition - and alternative incentives to innovate. A brief list of means that have been used or proposed for protecting intellectual property in agriculture is presented, followed by a discussion of the ongoing global evolution of the intellectual property environment and relevant institutions. Then we discuss instruments that are available for transacting intellectual property rights (IPRs), provide a quantitative view of trends in agricultural intellectual property protection worldwide, and end with a short conclusion.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/B7P5B-4NXHBYB-9/2/d94665990ffa772423bf9f0dc5210b6e
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

as
in new window

This chapter was published in:
  • Robert Evenson & Prabhu Pingali (ed.), 2007. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 3, number 1, 00.
  • This item is provided by Elsevier in its series Handbook of Agricultural Economics with number 5-48.
    Handle: RePEc:eee:hagchp:5-48
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Jaffe, Adam B., 2000. "The U.S. patent system in transition: policy innovation and the innovation process," Research Policy, Elsevier, vol. 29(4-5), pages 531-557, April.
    2. Gene M. Grossman & Edwin L.-C. Lai, 2004. "International Protection of Intellectual Property," American Economic Review, American Economic Association, vol. 94(5), pages 1635-1653, December.
    3. Pamela J. Smith, 2002. "Patent Rights and Trade: Analysis of Biological Products, Medicinals and Botanicals, and Pharmaceuticals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 495-512.
    4. Alan L. Olmstead & Paul W. Rhode, 2002. "The Red Queen and the Hard Reds: Productivity Growth in American Wheat, 1800-1940," NBER Working Papers 8863, National Bureau of Economic Research, Inc.
    5. Steven Shavell & Tanguy van Ypersele, 1999. "Rewards versus Intellectual Property Rights," NBER Working Papers 6956, National Bureau of Economic Research, Inc.
    6. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-80, November.
    7. Boldrin, Michele & Levine, David, 2002. "The Case Against Intellectual Property," CEPR Discussion Papers 3273, C.E.P.R. Discussion Papers.
    8. Alston, Julian M. & Venner, Raymond J., 2000. "The effects of the U.S. Plant Variety Protection Act on wheat genetic improvement:," EPTD discussion papers 62, International Food Policy Research Institute (IFPRI).
    9. Suzanne Scotchmer, 2002. "The Political Economy of Intellectual Property Treaties," Industrial Organization 0201004, EconWPA.
    10. 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, 07.
    11. Shoemaker, Robbin A. & Harwood, Joy L. & Day-Rubenstein, Kelly A. & Dunahay, Terry & Heisey, Paul W. & Hoffman, Linwood A. & Klotz-Ingram, Cassandra & Lin, William W. & Mitchell, Lorraine & McBride, W, 2001. "Economic Issues In Agricultural Biotechnology," Agricultural Information Bulletins 33735, United States Department of Agriculture, Economic Research Service.
    12. O'DONOGHUE, Ted & SCOTCHMER, Suzanne & THISSE, Jacques-François, . "Patent breadth, patent life, and the pace of technological progress," CORE Discussion Papers RP 1314, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    13. Nancy T. Gallini, 1992. "Patent Policy and Costly Imitation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 52-63, Spring.
    14. Ulrich, Alvin & Furtan, W Hartley & Schmitz, Andrew, 1986. "Public and Private Returns from Joint Venture Research: An Example from Agriculture," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 103-29, February.
    15. Sunding, David & Zilberman, David, 2001. "The agricultural innovation process: Research and technology adoption in a changing agricultural sector," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 4, pages 207-261 Elsevier.
    16. Pardey, Philip G. & Koo, Bonwoo & Nottenburg, Carol, 2004. "Creating, Protecting, And Using Crop Biotechnologies Worldwide In An Era Of Intellectual Property," Staff Papers 13600, University of Minnesota, Department of Applied Economics.
    17. Beintema, Nienke M. & Stads, Gert-Jan, 2004. "Investing in Sub-Saharan African agricultural research," 2020 vision briefs 8, International Food Policy Research Institute (IFPRI).
    18. Moschini, GianCarlo & Lapan, Harvey E., 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R & D," Staff General Research Papers 5048, Iowa State University, Department of Economics.
    19. Wesley M Cohen & Richard R Nelson & John P Walsh, 2003. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (Or Not)," Levine's Working Paper Archive 618897000000000624, David K. Levine.
    20. Costello, Christopher & Ward, Michael, 2006. "Search, bioprospecting and biodiversity conservation," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 615-626, November.
    21. Michael Kremer, 1998. "Patent Buyouts: A Mechanism For Encouraging Innovation," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1137-1167, November.
    22. Binenbaum, Eran & Pardey, Philip G. & Zambrano, Patricia & Nottenburg, Carol & Wright, Brian D., 2000. "South-North trade, intellectual property jurisdictions, and freedom to operate in agricultural research on staple crops:," EPTD discussion papers 70, International Food Policy Research Institute (IFPRI).
    23. Pardey, Philip G. & Alston, Julian M. & Chan-Kang, Connie & Magalhaes, Eduardo C. & Vosti, Stephen A., 2004. "Assessing and attributing the benefits from varietal improvement research in Brazil:," Research reports 136, International Food Policy Research Institute (IFPRI).
    24. Rausser, Gordon C. & Small, Arthur A., 2000. "Valuing Research Leads: Bioprospecting and the Conservation of Genetic Resources," Berkeley Olin Program in Law & Economics, Working Paper Series qt4t56m5b8, Berkeley Olin Program in Law & Economics.
    25. Simpson, R David & Sedjo, Roger A & Reid, John W, 1996. "Valuing Biodiversity for Use in Pharmaceutical Research," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 163-85, February.
    26. Deardorff, Alan V, 1992. "Welfare Effects of Global Patent Protection," Economica, London School of Economics and Political Science, vol. 59(233), pages 35-51, February.
    27. M. L. Weitzman, 1973. "Prices vs. Quantities," Working papers 106, Massachusetts Institute of Technology (MIT), Department of Economics.
    28. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3), pages 783-832.
    29. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
    30. Harold M. Groves, Chairman, Universities-National Bureau Committee for Economic Research, 1962. "The Rate and Direction of Inventive Activity: Economic and Social Factors," NBER Books, National Bureau of Economic Research, Inc, number univ62-1, October.
    31. Alston, Julian M. & Wyatt, T. J. & Pardey, Philip G. & Marra, Michele C. & Chan-Kang, Connie, 2000. "A meta-analysis of rates of return to agricultural R & D: ex pede Herculem?," Research reports 113, International Food Policy Research Institute (IFPRI).
    32. David D. Friedman & William M. Landes & Richard A. Posner, 1991. "Some Economics of Trade Secret Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 61-72, Winter.
    33. Carmen Matutes & Pierre Regibeau & Katharine Rockett, 1996. "Optimal Patent Design and the Diffusion of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 60-83, Spring.
    34. Lindner, Robert K., 2004. "Privatised provision of essential plant breeding infrastructure," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), June.
    35. Bob Lindner, 2004. "Privatised provision of essential plant breeding infrastructure ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 301-321, 06.
    36. Ashish Arora & Andrea Fosfuri, 2005. "Pricing Diagnostic Information," Management Science, INFORMS, vol. 51(7), pages 1092-1100, July.
    37. Julian M. Alston & Philip G. Pardey & Jennifer S. James & Matthew A. Anderson, 2009. "The Economics of Agricultural R&D," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 537-566, 09.
    38. Diez, M. C. F., 2002. "The impact of plant varieties rights on research: the case of Spain," Food Policy, Elsevier, vol. 27(2), pages 171-183, April.
    39. Kingwell, Ross S., 2001. "Charging for the use of plant varieties," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), June.
    40. Paul Klemperer, 1990. "How Broad Should the Scope of Patent Protection Be?," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 113-130, Spring.
    41. Machlup, Fritz & Penrose, Edith, 1950. "The Patent Controversy in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 10(01), pages 1-29, May.
    42. Hopenhayn, Hugo A & Mitchell, Matthew F, 2001. "Innovation Variety and Patent Breadth," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 152-66, Spring.
    43. Kremer, Michael R., 1998. "Patent Buyouts: A Mechanism for Encouraging Innovation," Scholarly Articles 3693705, Harvard University Department of Economics.
    44. Ulrich, Alvin & Furtan, William H & Schmitz, Andrew, 1987. "The Cost of a Licensing System Regulation: An Example from Canadian Prairie Agriculture," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 160-78, February.
    45. Haller, H. & Chou, T., 1995. "The Division of Profit in Sequential Innovation Reconsidered," Papers 9564, Tilburg - Center for Economic Research.
    46. Nottenburg, Carol & Pardey, Philip G. & Wright, Brian D., 2002. "Accessing other people’s technology for non-profit research," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(3), September.
    47. Kremer, Michael & Zwane, Alix Peterson, 2005. "Encouraging Private Sector Research for Tropical Agriculture," World Development, Elsevier, vol. 33(1), pages 87-105, January.
    48. Pardey, Philip G. & Beintema, Nienke M., 2002. "Slow Magic: Agricultural R&D A Century After Mendel," Working Papers 14364, University of Minnesota, Center for International Food and Agricultural Policy.
    49. Wright, Brian Davern, 1983. "The Economics of Invention Incentives: Patents, Prizes, and Research Contracts," American Economic Review, American Economic Association, vol. 73(4), pages 691-707, September.
    50. Alston, Julian M. & Pardey, Philip G. & Taylor, Michael J., 2001. "Agricultural science policy," Food policy statements 32, International Food Policy Research Institute (IFPRI).
    51. Pardey, Philip G & Roseboom, Johannes & Craig, Barbara J, 1992. "A Yardstick for International Comparisons: An Application to National Agricultural Research Expenditures," Economic Development and Cultural Change, University of Chicago Press, vol. 40(2), pages 333-49, January.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:hagchp:5-48. 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: (Zhang, Lei)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.