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Intellectual Property in Plant Breeding: Comparing Different Levels and Forms of Protection

Author

Listed:
  • Lence, Sergio H.
  • Hayes, Dermot J.
  • Alston, Julian
  • Smith, J. Stephen C.
Abstract
Welfare tradeoffs between intellectual property (IP) protections provided by patents and by plant variety protection (PVP) are explored. PVP breeders' exemption weakens IP protection, but may speed the transfer of research gains across firms. A model is developed assuming firms optimize research given existing IP protection. A baseline scenario supporting each system is used to perform welfare analysis, and study how the balance is altered between systems. Survey data suggest patents are more appropriate for longer-term, higher-risk research, whereas PVP is better suited for traditional breeding. A scenario where patents and licensing co-exist dominates PVP in all commercially relevant areas.

Suggested Citation

  • Lence, Sergio H. & Hayes, Dermot J. & Alston, Julian & Smith, J. Stephen C., 2015. "Intellectual Property in Plant Breeding: Comparing Different Levels and Forms of Protection," Staff General Research Papers Archive 38978, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:38978
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    File URL: http://www2.econ.iastate.edu/papers/p18978-2015-03-02.pdf
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    References listed on IDEAS

    as
    1. Deepthi Elizabeth Kolady & William Lesser, 2009. "But are they Meritorious? Genetic Productivity Gains under Plant Intellectual Property Rights," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 62-79, February.
    2. Lence, Sergio H. & Hayes, Dermot J., 2005. "Technology Fees Versus Gurts in the Presence of Spillovers: World Welfare Impacts," Staff General Research Papers Archive 12417, Iowa State University, Department of Economics.
    3. GianCarlo Moschini & Oleg Yerokhin, 2008. "Patents, Research Exemption, and the Incentive for Sequential Innovation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(2), pages 379-412, June.
    4. Robert E. Evenson, 1989. "Spillover Benefits of Agricultural Research: Evidence from U.S. Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 447-452.
    5. Deepthi Elizabeth Kolady & David J. Spielman & Anthony Cavalieri, 2012. "The Impact of Seed Policy Reforms and Intellectual Property Rights on Crop Productivity in India," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 361-384, June.
    6. Day-Rubenstein, Kelly A. & Heisey, Paul W. & Shoemaker, Robbin A. & Sullivan, John & Frisvold, George B., 2005. "Crop Genetic Resources: An Economic Appraisal," Economic Information Bulletin 59388, United States Department of Agriculture, Economic Research Service.
    7. Hayes, Dermot J. & Lence, Sergio H. & Goggi, Susana, 2010. "Impact of Intellectual Property Rights in the Seed Sector on Crop Yield Growth and Social Welfare: A Case Study Approach," Staff General Research Papers Archive 31484, Iowa State University, Department of Economics.
    8. Bonwoo Koo & Brian D. Wright, 2010. "Dynamic Effects of Patent Policy on Sequential Innovation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(2), pages 489-512, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Hervouet, Adrien & Langinier, Corinne, 2018. "Plant Breeders’ Rights, Patents, and Incentives to Innovate," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(1), January.
    2. Adrien Hervouet & Stéphane Lemarié, 2023. "The Economics of Royalty Rates in Plant Breeding," Working Papers 2023-03, Grenoble Applied Economics Laboratory (GAEL).
    3. Minyu Zhou & Ian Sheldon & Jihyun Eum, 2018. "The role of intellectual property rights in seed technology transfer through trade: evidence from U.S. field crop seed exports," Agricultural Economics, International Association of Agricultural Economists, vol. 49(4), pages 423-434, July.
    4. Ryota Nakatani, 2024. "Food companies' productivity dynamics: Exploring the role of intangible assets," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 185-226, January.
    5. Claire H Luby & Julie C Dawson & Irwin L Goldman, 2016. "Assessment and Accessibility of Phenotypic and Genotypic Diversity of Carrot (Daucus carota L. var. sativus) Cultivars Commercially Available in the United States," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-19, December.

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    More about this item

    Keywords

    Genetic improvement; intellectual property; seed industry; welfare analysis;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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

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