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Innovation Led Alliances: Theory and application to the GM Plant Industry

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  • Rousselière, Samira
  • Rousselière, Damien
  • Ramani, Shyama

Abstract

The objective of the present paper is to identify the determinants of the form of collaboration initiated between an upstream innovator and a downstream producer in order to incorporate a new input and commercialize an innovation consisting of a quality enhanced final product, with an empirical application to the GM plant industry. The choice of upstream firm between license, joint venture, merger or a subsidiary is modeled as a function of three parameters: degree of quality improvement engendered by the new input, the market share of the downstream producer and the capability of the downstream producer to incorporate the new input and commercialize it successfully. We also discuss the case where the downstream firm is a cooperative.

Suggested Citation

  • Rousselière, Samira & Rousselière, Damien & Ramani, Shyama, 2016. "Innovation Led Alliances: Theory and application to the GM Plant Industry," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235711, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235711
    DOI: 10.22004/ag.econ.235711
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    More about this item

    Keywords

    Agribusiness; Industrial Organization; Research and Development/Tech Change/Emerging Technologies;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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