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Spillovers and Their Impacts on the Returns to Agricultural Research and Development in the United States

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  • Arkoh, Isaac
  • Van der Sluis, Evert

Abstract

This study evaluates the impact of public agricultural research and development (R&D) and interstate knowledge spillovers on US agricultural productivity from 1971 to 2012. Using a statelevel production framework, it tests four spillover weighting schemes: USDA regions, geographic distance, production-mix clusters, and correlation-weighted clusters. Findings confirm that R&D significantly boosts total factor productivity, with national average social internal rates of return (19%-28%) substantially exceeding average local rates (9%-15%). Results are highly sensitive to spillover modeling, with agro-ecological similarity proving more predictive than geographic proximity. Public extension services further complement R&D, underscoring the need for coordinated investment to sustain productivity.

Suggested Citation

  • Arkoh, Isaac & Van der Sluis, Evert, 2026. "Spillovers and Their Impacts on the Returns to Agricultural Research and Development in the United States," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404707, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404707
    DOI: 10.22004/ag.econ.404707
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    References listed on IDEAS

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