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Innovation in the Seed Market: The Role of IPRs and Commercialization Rules

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  • Baudry Marc

    (Université de Paris Ouest Nanterre la Défense, EconomiX (UMR CNRS 7235), 200 Avenue de la République, 92001 Nanterre Cedex, France and Climate Economics Chair, Palais Brongniart, 4th floor, 28 place de la Bourse, 75002 Paris, France)

  • Hervouet Adrien

    (Institut d’Économie et de Management de Nantes-IAE, LEMNA, Chemin de la Censive de Tertre, BP 52231, 44322 Nantes, France; and INRA, UMR 1215 GAEL, 1241 rue des résidences, 38400 Saint Martin d’Hères)

Abstract

This article deals with the impact of legal rules on incentives in the seeds sector to create new plant varieties. The first category of rules consists in intellectual property rights and is intended to address a problem of sequential innovation and R&D effort. The second category concerns commercial rules that are intended to correct a problem of adverse selection. We propose a dynamic model of market equilibrium with vertical product differentiation that enables us to take into account the economic consequences of imposing either Plant Breeders’ Rights (PBRs) or patents as IPRs and either compulsory registration in a catalog or minimum standards as commercialization rules. The main result is that the combination of catalog registration and PBRs adopted in Europe is hardly supported by the model calibrated on data for wheat in France.

Suggested Citation

  • Baudry Marc & Hervouet Adrien, 2016. "Innovation in the Seed Market: The Role of IPRs and Commercialization Rules," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 51-68, May.
    • Handle: RePEc:bpj:bjafio:v:14:y:2016:i:1:p:51-68:n:7
    DOI: 10.1515/jafio-2015-0002
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    Cited by:

    1. Richard S. Gray, 2021. "In defense of farmer saved seeds," Review of Agricultural, Food and Environmental Studies, Springer, vol. 102(4), pages 451-460, December.
    2. 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.

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    More about this item

    Keywords

    intellectual property rights; plant breeders’ rights; catalog; product differentiation; seed market;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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