Measuring the benefits from R&D investment beyond the farm gate: the case of the WA wine industry
Evaluations of public sector agricultural research and development (R&D) often focus on farm level benefits. Flow-on benefits that accrue to other sectors such as processing and marketing typically are ignored. This paper however includes these benefits. Using the Western Australian wine industry as an example this paper highlights the relative importance of farm and flow-on benefits generated by farm-level R&D. A wine industry value chain model is used to measure these benefits. The benefits per dollar of R&D investment are found to be $2.8 at the farm level compared to $14.9 when flow-on benefits are taken into account. In this case, solely reporting farm level benefits hugely understates the returns to the R&D investment. The R&D policy implications of the inclusion of flow-on benefits are discussed briefly.
|Date of creation:||2009|
|Contact details of provider:|| Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200|
Phone: 0409 032 338
Web page: http://www4.agr.gc.ca
More information through EDIRC
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.:
- Zvi Griliches, 1958. "Research Costs and Social Returns: Hybrid Corn and Related Innovations," Journal of Political Economy, University of Chicago Press, vol. 66, pages 419-419.
- R. K. Lindner & F. G. Jarrett, 1978. "Supply Shifts and the Size of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(1), pages 48-58.
- Ballard, Charles L & Shoven, John B & Whalley, John, 1985. "General Equilibrium Computations of the Marginal Welfare Costs of Taxes in the United States," American Economic Review, American Economic Association, vol. 75(1), pages 128-138, March.
- Julian M. Alston & John W. Freebairn & Jennifer S. James, 2004.
"Levy-funded research choices by producers and society,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 48(1), pages 33-64, 03.
- Alston, Julian M. & Freebairn, John W. & James, Jennifer S., 2004. "Levy-funded research choices by producers and society," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), March.
- Oehmke, James F., 1988. "The Calculation of Returns to Research in Distorted Markets," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 2(4), December.
- J. W. Freebairn & J. S. Davis & G. W. Edwards, 1982. "Distribution of Research Gains in Multistage Production Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 39-46.
- Voon, Jan P. & Edwards, Geoff W., 1991. "The calculation of returns to research in distorted markets: Comment," Agricultural Economics, Blackwell, vol. 5(1), pages 75-82, January.
- Browning, Edgar K, 1976. "The Marginal Cost of Public Funds," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 283-298, April.
- Duncan, Ronald C., 1972. "Evaluating Returns To Research In Pasture Improvement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 16(03), December.
- Oehmke, James F., 1988. "The calculation of returns to research in distorted markets," Agricultural Economics, Blackwell, vol. 2(4), pages 291-302, December.
- Findlay, Christopher C & Jones, Robert L, 1982. "The Marginal Cost of Australian Income Taxation," The Economic Record, The Economic Society of Australia, vol. 58(162), pages 253-262, September.
- Marra, Michele C. & Pardey, Philip G. & Alston, Julian M., 2002. "The payoffs to agricultural biotechnology: an assessment of the evidence," EPTD discussion papers 87, International Food Policy Research Institute (IFPRI).
- Browning, Edgar K, 1987. "On the Marginal Welfare Cost of Taxation," American Economic Review, American Economic Association, vol. 77(1), pages 11-23, March.
- Fan, Shenggen & Hazell, P. B. R., 1997. "Should India invest more in less-favored areas?:," EPTD discussion papers 25, International Food Policy Research Institute (IFPRI).
When requesting a correction, please mention this item's handle: RePEc:ags:aare09:48169. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.