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Agricultural Biotechnology: Economic and International Implications

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  • Zilberman, David
  • Yarkin, Cherisa
  • Heiman, Amir

Abstract

Over the last 150 years, agriculture has been subject to several waves of innovation which have significantly altered its institutional structures, its products and the way it is practised. Mechanical, biological and chemical innovations have, in turn, reduced labour requirements, increased yields and reduced the impact of agricultural pests. More recently, computer and remote sensing technologies have improved input precision. Agricultural biotechnology is now emerging as a wellspring of innovations that will reshape agriculture as profoundly as any previous innovation paradigm.' This new technology has unique features which economists need to understand in order to formulate appropriate policy advice. This paper has two main purposes. First, we provide an overview of agricultural biotechnology. There are lessons from medical biotechnology which can be applied to agriculture. In addition, there are new institutions, including technology transfer offices and arrangements for intellectual property rights, which will be introduced and discussed. The second purpose is to introduce some basic analytical considerations and methodological issues which will be important in the study of biotechnology. In particular, these methodologies will relate to the issues in industrial organization associated with the process of product research, development and introduction; issues associated with adoption of biotechnology; and issues associated with pricing. Thus far, commercial biotechnology has been concentrated in the United States, but this technology has important global implications. This paper will examine and project what the American experience implies for the rest of the world and show how biotechnology and its evolution fit within the context of the relationship between developed and developing nations.

Suggested Citation

  • Zilberman, David & Yarkin, Cherisa & Heiman, Amir, 1997. "Agricultural Biotechnology: Economic and International Implications," 1997 Conference, August 10-16, 1997, Sacramento, California 197037, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae97:197037
    DOI: 10.22004/ag.econ.197037
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    References listed on IDEAS

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    1. David Zilberman, 1996. "The Economics of a Public Fund for Environmental Amenities: A Study of CRP Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 961-971.
    2. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    3. DOUGLAS D. Parker & DAVID Zilberman, 1993. "University Technology Transfers: Impacts On Local And U.S. Economies," Contemporary Economic Policy, Western Economic Association International, vol. 11(2), pages 87-99, April.
    4. Richard E. Just & Darrell L. Hueth, 1993. "Multimarket Exploitation: The Case of Biotechnology and Chemicals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 936-945.
    5. Babcock, Bruce A. & Lakshminarayan, P. G. & Wu, JunJie & Zilberman, David, 1996. "Economics of a Public Fund for Environmental Amenities (The)," Staff General Research Papers Archive 1065, Iowa State University, Department of Economics.
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    Cited by:

    1. Bradford Barham & Jeremy Foltz & Kwansoo Kim, 2002. "Trends in University Ag-Biotech Patent Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 294-308.
    2. Demont, Matty & Tollens, Eric, 1999. "The Economics Of Agricultural Biotechnology: Historical And Analytical Framework," Working Papers 31845, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    3. Jeremy Foltz & Bradford Barham & Kwansoo Kim, 2000. "Universities and agricultural biotechnology patent production," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 82-95.
    4. Xia, Yin & Buccola, Steven T., 2001. "Are Basic Science And Biotechnology Complementary Activities?," 2001 Annual meeting, August 5-8, Chicago, IL 20575, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Jeremy D. Foltz & Kwansoo Kim & Bradford L. Barham, 2001. "A Dynamic Count Data Analysis of University Ag-Biotech Patents," Food Marketing Policy Center Research Reports 056, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    6. Goodhue, Rachael E. & Rausser, Gordon C., 2003. "Value Differentiation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-21, December.
    7. Franks, Jeremy R., 1999. "The status and prospects for genetically modified crops in Europe," Food Policy, Elsevier, vol. 24(5), pages 565-584, October.
    8. Stone, Susan F. & Matysek, Anna & Dolling, Andrew, 2002. "Modelling Possible Impacts of GM Crops on Australian Trade," Staff Research Papers 31913, Productivity Commission.
    9. Jackson, Lee Ann, 2000. "Agricultural Biotechnology And The Privatization Of Genetic Information: Implications For Innovation And Equity," Working Papers 14365, University of Minnesota, Center for International Food and Agricultural Policy.

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