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Impact of government policies on private R&D investment in agricultural biotechnology: Evidence from chemical and pesticide firms in China

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  • Deng, Haiyan
  • Hu, Ruifa
  • Pray, Carl
  • Jin, Yanhong

Abstract

China has put in place a series of policies to support private companies to engage in biotechnology research. This study uses data from a survey of 103 major agribusiness firms in the agricultural chemical and seed industries in China to evaluate the impact of government policies on private R&D investment in biotechnology. The results show that firms with positive profit expectation, public R&D subsidies, R&D collaboration with universities/research institutes or state-owned enterprises are more likely to embark on biotechnology research activities. Past patenting activity, R&D subsidies and collaboration with public sector research increase firms' biotechnology R&D investment while firms already selling genetically modified products and firms that are state-owned spend less on R&D. Our findings suggest that government policy does have an important impact on firms' biotechnology R&D investment.

Suggested Citation

  • Deng, Haiyan & Hu, Ruifa & Pray, Carl & Jin, Yanhong, 2019. "Impact of government policies on private R&D investment in agricultural biotechnology: Evidence from chemical and pesticide firms in China," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 208-215.
    • Handle: RePEc:eee:tefoso:v:147:y:2019:i:c:p:208-215
    DOI: 10.1016/j.techfore.2019.07.011
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