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Innovation in the seed market: the role of IPRs and commercialization rules

Listed author(s):
  • Marc Baudry

    (Economix - Université Paris Ouest Nanterre La Défense (Paris 10), CEC - CEC, Chaire économie du Climat)

  • Adrien Hervouet

    ()

    (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRA - Institut National de la Recherche Agronomique - Université Grenoble Alpes - Grenoble 2)

This article deals with the impact of legal rules on incentives in the seeds sector to create new plant varieties. The first category of rules consists in intellectual property rights and is intended to address a problem of sequential innovation and R&D effort. The second category concerns commercial rules that are intended to correct a problem of adverse selection. We propose a dynamic model of market equilibrium with vertical product differentiation that enables us to take into account the economic consequences of imposing either Plant Breeders’ Rights (PBRs) or patents as IPRs and either compulsory registration in a catalog or minimum standards as commercialization rules. The main result is that the combination of catalog registration and PBRs adopted in Europe is hardly supported by the model calibrated on data for wheat in France. Journal of Agricultural & Food Industrial Organization, vol. 14, n° 1, pp. 51-68, 2016

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Paper provided by HAL in its series Post-Print with number hal-01449994.

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Date of creation: 2016
Publication status: Published in Journal of Agricultural and Food Industrial Organization, De Gruyter, 2016, 14 (1), pp.51-68
Handle: RePEc:hal:journl:hal-01449994
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01449994
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  1. 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.
  2. Alan McCunn & Stephen Smith & William S. Niebur, 2005. "Welfare Impacts of Intellectual Property Protection in the Seed Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 951-968.
  3. Edward C. Prescott & Michael Visscher, 1977. "Sequential Location among Firms with Foresight," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 378-393, Autumn.
  4. James Bessen & Eric Maskin, 2009. "Sequential innovation, patents, and imitation," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 611-635.
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  8. Ambec, Stefan & Langinier, Corinne & Lemarie, Stephane, 2008. "AJAE Appendix: Incentives to Reduce Crop Trait Durability," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(2), May.
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  10. Srinivasan, Chittur S., 2012. "Modelling Economic Returns to Plant Variety Protection in the UK," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.
  11. Oleg Yerokhin & GianCarlo Moschini, 2008. "Intellectual Property Rights and Crop-Improving R&D under Adaptive Destruction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(1), pages 53-72, May.
  12. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
  13. Tripp, Robert & Louwaars, Niels, 1997. "Seed regulation: choices on the road to reform," Food Policy, Elsevier, vol. 22(5), pages 433-446, October.
  14. Lesser, William H., 2000. "An Economic Approach To Identifying An 'Effective Sui Generis System' For Plant Variety Protection Unders Trips," Proceedings: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.
  15. Lence, Sergio H. & Hayes, Dermot J. & McCunn, Alan & Smith, Stephen & Niebur, William S., 2005. "Welfare Impacts of Intellectual Property Protection in the Seed Industry," Staff General Research Papers Archive 12434, Iowa State University, Department of Economics.
  16. C. S. Srinivasan, 2003. "Exploring the Feasibility of Farmers' Rights," Development Policy Review, Overseas Development Institute, vol. 21, pages 419-447, 07.
  17. Trommetter, M., 2008. "Intellectual property rights in agricultural and agro-food biotechnologies to 2030 (© OECD International Futures Programme)," Working Papers 200805, Grenoble Applied Economics Laboratory (GAEL).
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