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Is agricultural research still a public good?

Author

Listed:
  • James F. Oehmke

    (Department of Agricultural Economics, Agriculture Hall, Michigan State University, East Lansing, MI 48824-1069)

  • Dave D. Weatherspoon

    (Department of Agricultural Economics, Agriculture Hall, Michigan State University, East Lansing, MI 48824-1069)

  • Christopher A. Wolf

    (Department of Agricultural Economics, Agriculture Hall, Michigan State University, East Lansing, MI 48824-1069)

  • Anwar Naseem

    (Department of Agricultural Economics, Agriculture Hall, Michigan State University, East Lansing, MI 48824-1069)

  • Mywish Maredia

    (Department of Agricultural Economics, Agriculture Hall, Michigan State University, East Lansing, MI 48824-1069)

  • Amie Hightower

    (Department of Agricultural Economics, Agriculture Hall, Michigan State University, East Lansing, MI 48824-1069)

Abstract

Biotechnology is redefining the nature of agricultural research and intellectual property. In response, public agricultural research institutions are increasingly protecting their intellectual property and commercializing research results. This raises the question: Is agricultural research still a public good? This paper is a critical first step in understanding how increasingly private ownership of intellectual property affects the agribusiness environment and the evolving role of public agricultural research institutions. The innovative step is the development of a neo-Schumpeterian model which examines whether commercialization of public research maximizes social welfare. The model contains two types of research firms: large firms such as the major life-science companies; and small university-related firms (SMURFs). Results show that both large firms and SMURFs underinvest in research relative to the social optimum, that research investment can exhibit cyclical behavior, and that there is a continued, albeit diminished, role for public agricultural research as the life-science revolution progresses. [JEL Classifications: Q13, O34, L10] © 2000 John Wiley & Sons, Inc.

Suggested Citation

  • James F. Oehmke & Dave D. Weatherspoon & Christopher A. Wolf & Anwar Naseem & Mywish Maredia & Amie Hightower, 2000. "Is agricultural research still a public good?," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 68-81.
    • Handle: RePEc:wly:agribz:v:16:y:2000:i:1:p:68-81
    DOI: 10.1002/(SICI)1520-6297(200024)16:1<68::AID-AGR6>3.0.CO;2-I
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Michael J. Rizzo, 2005. "The public interest in higher education," Proceedings, Federal Reserve Bank of Cleveland, pages 19-45.
    2. Xia, Yin & Buccola, Steven T., 2001. "Are Basic Science And Biotechnology Complementary Activities?," 2001 Annual meeting, August 5-8, Chicago, IL 20575, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Esposti, Roberto, 2012. "Knowledge, Technology and Innovations for a Bio-based Economy: Lessons from the Past, Challenges for the Future," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(3), pages 1-34, December.
    4. Bradford Barham & Jeremy Foltz & Kwansoo Kim, 2002. "Trends in University Ag-Biotech Patent Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 294-308.
    5. Weatherspoon, Dave D. & Oehmke, James F. & Raper, Kellie Curry, 2000. "An Era Of Confusion: The Land Grant Research Agenda And Biotechnology," Staff Paper Series 11559, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. Oehmke, James F. & Wolf, Christopher A. & Weatherspoon, Dave D. & Naseem, Anwar & Maredia, Mywish K. & Raper, Kellie Curry & Hightower, Amie L., 1999. "Cyclical Concentration And Biotech R&D Activity: A Neo-Schumpeterian Model," Staff Paper Series 11792, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Oehmke, James F. & Wolf, Christopher A. & Weatherspoon, Dave D. & Naseem, Anwar & Maredia, Mywish K. & Raper, Kellie Curry & Hightower, Amie L., 1999. "Cyclical Concentration And Consolidation In Biotech R&D: A Neo-Schumpeterian Model," Staff Paper Series 11812, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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    More about this item

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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