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Economic impact of farming innovations: Arbitration between hybrid and inbred line in the seed sector Arbitration between hybrid and inbred line in the seed sector

Author

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  • Ambec, Stefan
  • Lemarie, Stephane

Abstract

Innovations concerning crop seeds essentially stem from private research. Seed companies may appropriate a larger part of the economic profits from innovation by choosing to create hybrid seeds rather than inbred line seeds. Yet this technological choice also has an impact in terms of efficiency since production costs differ according to the type of seed. This text surveys research work in which we show that, from an economic viewpoint, in some cases, firms’ technological choices may entail a loss. We also show that this loss is reduced by implementing a tax on on-farm-produced seeds from inbred-line seeds, like the “contribution volontaire obligatoire” (compulsory voluntary contribution) (CVC) in the case of wheat in France.

Suggested Citation

  • Ambec, Stefan & Lemarie, Stephane, 2006. "Economic impact of farming innovations: Arbitration between hybrid and inbred line in the seed sector Arbitration between hybrid and inbred line in the seed sector," INRAE Sciences Sociales, Institut national de recherche pour l'agriculture, l'alimentation et l'environnement (INRAE), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2), vol. 2006, pages 1-6, November.
    • Handle: RePEc:ags:inrass:157448
    DOI: 10.22004/ag.econ.157448
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