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Market size and innovation: An application to the French seed market for large crops

Author

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  • Charlot, Sylvie
  • Dridi, Chokri
  • Lemarié, Stéphane

Abstract

The aim of this paper is to analyse the impact of market size on innovation in the seed industry. The analysis is based on a panel dataset that covers 19 large crops in France during the period 1989-2012. Our econometric analysis is based on a negative binomial specification and we conduct both cross section as well as panel data analysis. We show that the French crop area always has a positive and significant effect on the number of innovations introduced each year. Market size of foreign countries may be either positive or negative revealing synergy or substitution effects. When hybrid crops are considered, the innovation is mainly determined by a positive and very significant fixed effect, crop area having no more influence. This last result can be interpreted as market size being mainly dependent on crop area for non-hybrid crop and dependent of price mark-up for hybrid crops.

Suggested Citation

  • Charlot, Sylvie & Dridi, Chokri & Lemarié, Stéphane, 2015. "Market size and innovation: An application to the French seed market for large crops," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205520, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205520
    DOI: 10.22004/ag.econ.205520
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    Cited by:

    1. Lemarié, Stéphane & Parenty, Sébastien, 2016. "Research incentives and tradeoff for improving productivity of different crops," 149th Seminar, October 27-28, 2016, Rennes, France 245161, European Association of Agricultural Economists.
    2. Aude Vialatte & Anaïs Tibi & Audrey Alignier & Valérie Angeon & Laurent Bedoussac & David Bohan & Douadia Bougherara & Stéphane Cordeau & Pierre Courtois & Jean-Philippe Deguine & Jérôme Enjalbert & F, 2025. "Protecting crops with plant diversity: Agroecological promises, socioeconomic lock-in, and political levers [Protéger les cultures grâce à la diversité végétale : promesses agroécologiques, verroui," Post-Print hal-05079011, HAL.

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    Keywords

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    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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