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Plant Breeders' Rights, Patents, and Incentives to Innovate

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  • Adrien Hervouet

    () (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes)

  • Corinne Langinier

    (University of Alberta)

Abstract

Both patents and Plant Breeders' Rights (PBRs) can protect plant innovations. Unlike patents, PBRs allow farmers to save part of their harvest to replant. We analyze the impact of this exemption on prices and innovation in a monopoly setting. In a PBR regime, a monopolist might let farmers self-produce, and he over-or under-invests compared to socially optimal investments. Under a PBR and patent regime, large (small) innovations are more likely to be patented (protected with PBRs), but self-production is not completely prevented, private investments are often socially optimal, and incentives to innovate are boosted. However, overall effects on welfare are ambiguous.

Suggested Citation

  • Adrien Hervouet & Corinne Langinier, 2018. "Plant Breeders' Rights, Patents, and Incentives to Innovate," Post-Print hal-01808195, HAL.
  • Handle: RePEc:hal:journl:hal-01808195
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01808195
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    Keywords

    seed saving; plant breeders' rights; durable good; innovation; patents;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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