IDEAS home Printed from https://ideas.repec.org/p/ags/aaea03/22137.html

An Empirical Analysis Of Public And Private Spillovers Within The Canola Biotech Industry

Author

Listed:
  • Gray, Richard S.
  • Malla, Stavroula
  • Tran, Kien C.

Abstract

The study uses firm-specific data in the biotech canola industry to empirically examine research spillovers among public and private firms at the level of research output, research sales revenue, and research social revenue. The non-pecuniary spillovers that are examined include basic research, human capital/ knowledge (as measured through other-firm expenditures) and genetics (as measured through yields of other-firms). The results provide strong empirical evidence of several research spillovers in the biotech crop research industry such as: basic and applied public research creates a positive spillover for private firms at all levels; applied expenditure within-group reduces other-firm revenue while between-group expenditure increases revenue; genetic spillovers within-group have a positive impact on yield but tend to have a negative impact on firm revenue.

Suggested Citation

  • Gray, Richard S. & Malla, Stavroula & Tran, Kien C., 2003. "An Empirical Analysis Of Public And Private Spillovers Within The Canola Biotech Industry," 2003 Annual meeting, July 27-30, Montreal, Canada 22137, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:22137
    DOI: 10.22004/ag.econ.22137
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22137/files/sp03gr01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.22137?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
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
    3. James D. Adams & Adam B. Jaffe, 1996. "Bounding the Effects of R&D: An Investigation Using Matched Establishment-Firm Data," RAND Journal of Economics, The RAND Corporation, vol. 27(4), pages 700-721, Winter.
    4. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
    5. Arthur M. Diamond, 1999. "Does Federal Funding “Crowd In” Private Funding Of Science?," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 423-431, October.
    6. Daniel K. N. Johnson & Robert E. Evenson, 1999. "R&D Spillovers To Agriculture: Measurement And Application," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 432-456, October.
    7. Tom K. Lee, 1985. "On the Joint Decisions of R&D and Technology Adoption," Management Science, INFORMS, vol. 31(8), pages 959-969, August.
    8. Tom K. Lee, 1982. "A Nonsequential R & D Search Model," Management Science, INFORMS, vol. 28(8), pages 900-909, August.
    9. He, Senhui & White, Fred C. & Fletcher, Stanley M., 2003. "Research Spillovers And Returns To Wheat Research Investment," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35043, Southern Agricultural Economics Association.
    10. Evenson, Robert E & Kislev, Yoav, 1976. "A Stochastic Model of Applied Research," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 265-281, April.
    11. Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August.
    12. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    13. Huffman, Wallace E. & Evenson, Robert E., 1993. "Science for Agriculture: A Long Term Perspective," Staff General Research Papers Archive 10997, Iowa State University, Department of Economics.
    14. James D. Adams, 2000. "Endogenous R&D Spillovers and Industrial Research Productivity," NBER Working Papers 7484, National Bureau of Economic Research, Inc.
    15. Roberts, Russell D, 1984. "A Positive Model of Private Charity and Public Transfers," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 136-148, February.
    16. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    17. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-121, January.
    18. Zoltan J. Acs & David B. Audretsch & Maryann P. Feldman, 2008. "R&D Spillovers and Recipient Firm Size," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 8, pages 88-94, Edward Elgar Publishing.
    19. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    20. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
    21. James D Adams, 1997. "The Structure of Firm R&D and the Factor Intensity of Production," Working Papers 97-15, Center for Economic Studies, U.S. Census Bureau.
    22. Joseph G. Nagy & W. Hartley Furtan, 1978. "Economic Costs And Returns From Crop Development Research: The Case Of Rapeseed Breeding In Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 26(1), pages 1-14, February.
    23. Heisey, Paul W. & Morris, Michael L., 2002. "Practical Challenges To Estimating The Benefits Of Agricultural R&D: The Case Of Plant Breeding Research," 2002 Annual meeting, July 28-31, Long Beach, CA 19828, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    24. James D. Adams, 1999. "The Structure Of Firm R&D, The Factor Intensity Of Production, And Skill Bias," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 499-510, August.
    25. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    26. Khanna, Jyoti & Posnett, John & Sandler, Todd, 1995. "Charity donations in the UK: New evidence based on panel data," Journal of Public Economics, Elsevier, vol. 56(2), pages 257-272, February.
    27. David, Paul A. & Hall, Bronwyn H., 2000. "Heart of darkness: modeling public-private funding interactions inside the R&D black box," Research Policy, Elsevier, vol. 29(9), pages 1165-1183, December.
    28. Alston, Julian M. & Christian, Jason E. & Fan, Shenggen. & Pardey, Philip G., 1996. "Hidden harvest," Food policy reports 6, International Food Policy Research Institute (IFPRI).
    29. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-293, June.
    30. Robert E. Evenson, 1989. "Spillover Benefits of Agricultural Research: Evidence from U.S. Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 447-452.
    31. Richard C. Levin & Peter C. Reiss, 1988. "Cost-Reducing and Demand-Creating R&D with Spillovers," RAND Journal of Economics, The RAND Corporation, vol. 19(4), pages 538-556, Winter.
    32. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    33. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    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. Gray, Richard S. & Malla, Stavroula & Tran, Kien C., 2005. "Pecuniary, Non-Pecuniary, and Downstream Research Spillovers: The Case of Canola," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24776, European Association of Agricultural Economists.
    2. Gray, Richard & Malla, Stavroula, 2007. "Research Spillovers What They Are and Why They Matter for Policy," CAIRN Policy Briefs 273075, Canadian Agricultural Innovation and Regulation Network (CAIRN).
    3. Malla, Stavroula & Gray, Richard S., 2001. "An Analytical And Empirical Analysis Of The Private Biotech R&D Incentives," 2001 Annual meeting, August 5-8, Chicago, IL 20544, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
    5. Fulvio Castellacci, 2007. "Technological regimes and sectoral differences in productivity growth ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1105-1145, December.
    6. Simon Wiederhold, 2012. "The Role of Public Procurement in Innovation: Theory and Empirical Evidence," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 43.
    7. Castellacci, Fulvio, 2008. "Innovation and the competitiveness of industries: comparing the mainstream and the evolutionary approaches," MPRA Paper 27523, University Library of Munich, Germany.
    8. Malla, Stavroula & Gray, Richard S., 2002. "Crop Research Incentives in a Privatized Industry: A Stochastic Approach," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24936, European Association of Agricultural Economists.
    9. Bonte, Werner, 2004. "Spillovers from publicly financed business R&D: some empirical evidence from Germany," Research Policy, Elsevier, vol. 33(10), pages 1635-1655, December.
    10. Giovanni Cerulli & Bianca Potì, 2010. "The differential impact of privately and publicly funded R&D on R&D investment and innovation: The Italian case," Working Papers 10, Doctoral School of Economics, Sapienza University of Rome, revised 2010.
    11. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    12. Kaiser, Ulrich, 2002. "Measuring knowledge spillovers in manufacturing and services: an empirical assessment of alternative approaches," Research Policy, Elsevier, vol. 31(1), pages 125-144, January.
    13. Stavins, Robert & Jaffe, Adam & Newell, Richard, 2000. "Technological Change and the Environment," Working Paper Series rwp00-002, Harvard University, John F. Kennedy School of Government.
    14. Andrea Bassanini & Stefano Scarpetta, 2003. "The Driving Forces of Economic Growth: Panel Data Evidence for the OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 9-56.
    15. Pedro de Faria & Francisco Lima, 2012. "Interdependence and spillovers: is firm performance affected by others’ innovation activities?," Applied Economics, Taylor & Francis Journals, vol. 44(36), pages 4765-4775, December.
    16. Aikaterini Kokkinou, 2005. "Entrepreneurship, Innovation Activities and Regional Growth," ERSA conference papers ersa05p419, European Regional Science Association.
    17. Gong, Guan & Keller, Wolfgang, 2003. "Convergence and polarization in global income levels: a review of recent results on the role of international technology diffusion," Research Policy, Elsevier, vol. 32(6), pages 1055-1079, June.
    18. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy, vol. 3, pages 1-72.
    19. Joseph Zeira, 2011. "Innovations, patent races and endogenous growth," Journal of Economic Growth, Springer, vol. 16(2), pages 135-156, June.
    20. Jörg Bühnemann, 2012. "Lissabon 2010 - Eine F&E-orientierte Konzeption neuer Förderregionen," FEMM Working Papers 120008, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    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:ags:aaea03:22137. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.