IDEAS home Printed from https://ideas.repec.org/p/cec/wpaper/1602.html
   My bibliography  Save this paper

The private value of plant variety protection and the impact of exemption rules

Author

Listed:
  • Marc Baudry
  • Adrien Hervouet

Abstract

Plant Breeders Rights (PBRs) are sui generis IPRs intended to promote plant variety creation. Two characteristics distinguish PBRs from patents: the research and the farmers’ exemptions. This article attempts to assess the impact of these exemption rules on the private value of PBRs. For this purpose, a microeconometric model of PBRs renewals is developed and estimated. This model extends previous models of patents renewals by allowing the use of PBRs-specific variables. It is argued that simple tests on the coefficients associated to key PBRs-specific variables can provide insights into the impact of the two exemption rules. Implementation to PBRs in France over the period 1973-2011 for six major crops suggests that neither the farmers’ exemption nor the research exemption have a clear cut effect on the private value of PBRs. We conclude that there is no evidence to argue in favor of a reform of PBRs.

Suggested Citation

  • Marc Baudry & Adrien Hervouet, 2016. "The private value of plant variety protection and the impact of exemption rules," Working Papers 1602, Chaire Economie du climat.
    • Handle: RePEc:cec:wpaper:1602
    as

    Download full text from publisher

    File URL: http://www.chaireeconomieduclimat.org/RePEc/cec/wpaper/16-02-Cahier-R-2016-02-Baudry-Hervouet.pdf
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Marc Baudry & Béatrice Dumont, 2006. "Patent Renewals as Options: Improving the Mechanism for Weeding Out Lousy Patents," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(1), pages 41-62, February.
    2. Alston, Julian M. & Venner, Raymond J., 2002. "The effects of the US Plant Variety Protection Act on wheat genetic improvement," Research Policy, Elsevier, vol. 31(4), pages 527-542, May.
    3. Schankerman, Mark & Pakes, Ariel, 1986. "Estimates of the Value of Patent Rights in European Countries during the Post-1950 Period," Economic Journal, Royal Economic Society, vol. 96(384), pages 1052-1076, December.
    4. Partha Dasgupta & Joseph Stiglitz, 1980. "Uncertainty, Industrial Structure, and the Speed of R&D," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 1-28, Spring.
    5. Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
    6. Evenson, Robert E., 2001. "Economic impacts of agricultural research and extension," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628, Elsevier.
    7. Anonymous, 1962. "Economic and Social Council," International Organization, Cambridge University Press, vol. 16(1), pages 195-216, January.
    8. Marc Baudry & Béatrice Dumont, 2012. "Valuing patents using renewal data : an inquiry into the feasability of an automated patent scoring method," EconomiX Working Papers 2012-31, University of Paris Nanterre, EconomiX.
    9. repec:fth:harver:1473 is not listed on IDEAS
    10. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    11. C. S. Srinivasan, 2003. "Exploring the Feasibility of Farmers' Rights," Development Policy Review, Overseas Development Institute, vol. 21, pages 419-447, July.
    12. Francesca Cornelli & Mark Schankerman, 1999. "Patent Renewals and R&D Incentives," RAND Journal of Economics, The RAND Corporation, vol. 30(2), pages 197-213, Summer.
    13. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    14. Lanjouw, Jean O & Pakes, Ariel & Putnam, Jonathan, 1998. "How to Count Patents and Value Intellectual Property: The Uses of Patent Renewal and Application Data," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 405-432, December.
    15. Pakes, Ariel S, 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," Econometrica, Econometric Society, vol. 54(4), pages 755-784, July.
    16. W. Lesser, 1994. "Valuation of Plant Variety Protection Certificates," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 16(2), pages 231-238.
    17. Hall, Bronwyn H & Ziedonis, Rosemarie Ham, 2001. "The Patent Paradox Revisited: An Empirical Study of Patenting in the U.S. Semiconductor Industry, 1979-1995," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 101-128, Spring.
    18. W. Lesser, 2000. "An economic approach to identifying an “effective sui generis system” for plant variety protection under trips," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 96-114.
    19. Richard Carew & Stephen Devadoss, 2003. "Quantifying the Contribution of Plant Breeders’Rights and Transgenic Varieties to Canola Yields: Evidence from Manitoba," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(3), pages 371-395, November.
    20. Nagaoka, Sadao & Motohashi, Kazuyuki & Goto, Akira, 2010. "Patent Statistics as an Innovation Indicator," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1083-1127, Elsevier.
    21. Suzanne Scotchmer, 1999. "On the Optimality of the Patent Renewal System," RAND Journal of Economics, The RAND Corporation, vol. 30(2), pages 181-196, Summer.
    22. Bessen, James, 2008. "The value of U.S. patents by owner and patent characteristics," Research Policy, Elsevier, vol. 37(5), pages 932-945, June.
    23. Jean O. Lanjouw & Ariel Pakes & Jonathan Putnam, 1998. "How to Count Patents and Value Intellectual Property: The Uses of Patent Renewal and Application Data," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 405-432, December.
    24. Bessen, James, 2009. "Estimates of patent rents from firm market value," Research Policy, Elsevier, vol. 38(10), pages 1604-1616, December.
    25. Anonymous, 1962. "Economic and Social Council," International Organization, Cambridge University Press, vol. 16(4), pages 835-844, October.
    26. Anonymous, 1962. "Economic and Social Council," International Organization, Cambridge University Press, vol. 16(3), pages 587-596, July.
    27. Diez, M. C. F., 2002. "The impact of plant varieties rights on research: the case of Spain," Food Policy, Elsevier, vol. 27(2), pages 171-183, April.
    28. Mark Schankerman & Ariel Pakes, 1985. "Valeur et obsolescence des brevets : une analyse des statistiques de renouvellement des brevets européens," Revue Économique, Programme National Persée, vol. 36(5), pages 917-942.
    29. Russell Thomson, 2015. "The Yield of Plant Variety Protection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(3), pages 762-785.
    30. Mark Schankerman, 1998. "How Valuable is Patent Protection? Estimates by Technology Field," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 77-107, Spring.
    31. Lesser, William H., 2000. "An Economic Approach To Identifying An 'Effective Sui Generis System' For Plant Variety Protection Unders Trips," Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 25996, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    32. Nicholas Bloom & John Van Reenen, 2002. "Patents, Real Options and Firm Performance," Economic Journal, Royal Economic Society, vol. 112(478), pages 97-116, March.
    33. Ariel Pakes & Mark Schankerman, 1984. "The Rate of Obsolescence of Patents, Research Gestation Lags, and the Private Rate of Return to Research Resources," NBER Chapters, in: R&D, Patents, and Productivity, pages 73-88, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ting Meng & Richard Carew & Wojciech J. Florkowski, 2020. "Determinants of the grant lag and the surrender lag of horticultural crop plant breeders’ rights applications: Survival analysis with competing risks," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(4), pages 489-512, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicolas van Zeebroeck, 2009. "From patent renewals to applications survival: do portfolio management strategies play a role in patent length?," Working Papers CEB 09-028.RS, ULB -- Universite Libre de Bruxelles.
    2. Nicolas van Zeebroeck, 2007. "Patents only live twice: a patent survival analysis in Europe," Working Papers CEB 07-028.RS, ULB -- Universite Libre de Bruxelles.
    3. Appio, Francesco Paolo & Baglieri, Daniela & Cesaroni, Fabrizio & Spicuzza, Lucia & Donato, Alessia, 2022. "Patent design strategies: Empirical evidence from European patents," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    4. Nicolas van Zeebroeck, 2011. "Long Live Patents: the Increasing Life Expectancy of Patent Applications and its Determinants," Review of Economics and Institutions, Università di Perugia, vol. 2(3).
    5. Zhang, Gupeng & Lv, Xiaofeng & Zhou, Jianghua, 2014. "Private value of patent right and patent infringement: An empirical study based on patent renewal data of China," China Economic Review, Elsevier, vol. 28(C), pages 37-54.
    6. Bessen, James, 2008. "The value of U.S. patents by owner and patent characteristics," Research Policy, Elsevier, vol. 37(5), pages 932-945, June.
    7. Federico Munari & Maurizio Sobrero, 2011. "Economic and Management Perspectives on the Value of Patents," Chapters, in: Federico Munari & Raffaele Oriani (ed.), The Economic Valuation of Patents, chapter 3, Edward Elgar Publishing.
    8. Gaétan de Rassenfosse & Adam B. Jaffe, 2018. "Are patent fees effective at weeding out low‐quality patents?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(1), pages 134-148, March.
    9. Nicolas van Zeebroeck, 2011. "The puzzle of patent value indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 33-62.
    10. Gupeng, Zhang & Xiangdong, Chen, 2012. "The value of invention patents in China: Country origin and technology field differences," China Economic Review, Elsevier, vol. 23(2), pages 357-370.
    11. Antoine Dechezleprêtre & Yann Ménière & Myra Mohnen, 2017. "International patent families: from application strategies to statistical indicators," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 793-828, May.
    12. Deng, Yi, 2005. "Private Value of European Patents," Departmental Working Papers 0513, Southern Methodist University, Department of Economics.
    13. Deng, Yi, 2007. "Private value of European patents," European Economic Review, Elsevier, vol. 51(7), pages 1785-1812, October.
    14. Mabrouki, Mohamed, 2017. "Analyse empirique de la relation entre les décisions de renouvellement des brevets et les montants d’annuités [Empirical analysis of the relationship between patent renewal decisions and the amount," MPRA Paper 80484, University Library of Munich, Germany.
    15. Wagner, Stefan & Wakeman, Simon, 2016. "What do patent-based measures tell us about product commercialization? Evidence from the pharmaceutical industry," Research Policy, Elsevier, vol. 45(5), pages 1091-1102.
    16. Liu, Li-jun & Cao, Cong & Song, Min, 2014. "China's agricultural patents: How has their value changed amid recent patent boom?," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 106-121.
    17. Yi Deng, 2003. "A Dynamic Stochastic Analysis of International Patent Application and Renewal Processes," Computing in Economics and Finance 2003 189, Society for Computational Economics.
    18. Jinyoung Kim, 2015. "Patent Portfolio Management of Sequential Inventions: Evidence from US Patent Renewal Data," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 47(2), pages 195-218, September.
    19. Alam, Md Razib & Dalziel, Margaret & Cozzarin, Brian P., 2022. "Invented here but owned elsewhere: The widening gap between domestic and foreign patent ownership in Canada," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    20. Leila Tahmooresnejad & Catherine Beaudry, 2018. "Do patents of academic funded researchers enjoy a longer life? A study of patent renewal decisions," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-22, August.

    More about this item

    Keywords

    IPRs; Inventors'exemption; Farmers'exemption; Plant variety creation; Renewals.;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cec:wpaper:1602. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chaire Economie du Climat (email available below). General contact details of provider: http://www.chaireeconomieduclimat.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.