R&D Spillovers in Agriculture: Results from a Trade Model
The objective of this study is to analyze technical change and the role of research and development (R&D) spillovers in this process for the U.S. agricultural sector. This study is composed of both a theoretical and an empirical analysis. In the theoretical analysis, a quality innovation model is used in which the R&D sector is the source of technological progress and is composed of a public and a private sector. The public R&D sector can serve either as a substitute to the private R&D sector or as a complement to it. Free trade is included in the next step of the analysis as a mechanism through which R&D spillovers are realized, along with increased market size for domestic R&D firms and increased competition from foreign R&D firms. Two different trade scenarios are utilized: a North-North and a North-South, as the United States has trade relations with both developed and developing countries. In the empirical analysis, the propositions of the model are tested for U.S. agricultural sector data. I find that R&D spillovers have a significant and positive effect on technical change as well as private R&D spending. The results indicate that the public R&D sector's complementary role outweighs its substitutability to the private R&D sector, as it is found to have a significantly positive effect on private R&D spending.
|Date of creation:||Sep 2003|
|Date of revision:|
|Contact details of provider:|| Postal: 578 Heady Hall, Ames, Iowa 50011-1070|
Phone: (515) 294-1183
Fax: (515) 294-6336
Web page: http://www.card.iastate.edu/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ias:cpaper:03-wp344. 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: ()
If references are entirely missing, you can add them using this form.