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Gains to Research in the Presence of Intellectual Property Rights and Research Subsidies

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  • Stavroula Malla
  • Richard Gray
  • Peter Phillips

Abstract

The influx of private investment into crop research, which has accompanied the establishment of intellectual property rights (IPRs) and the introduction of biotechnology, suggests high rates of return. However, the empirical analysis of the canola research sector shows a decline in the total net return to research during a period of increased investment, indicating that net marginal returns to research have been negative. The indication of immiserizing research suggests that the combined effect of IPRs and public incentives has driven the quantity of research beyond the socially optimal level.

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  • Stavroula Malla & Richard Gray & Peter Phillips, 2004. "Gains to Research in the Presence of Intellectual Property Rights and Research Subsidies," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(1), pages 63-81.
    • Handle: RePEc:oup:revage:v:26:y:2004:i:1:p:63-81.
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    1. Wallace E. Huffman & Robert E. Evenson, 1989. "Supply and Demand Functions for Multiproduct U.S. Cash Grain Farms: Biases Caused by Research and Other Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 761-773.
    2. Giancarlo Moschini & Harvey Lapan, 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R&D," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1229-1242.
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    6. Alston, Julian M. & Marra, Michele C. & Pardey, Philip G. & Wyatt, T.J., 2000. "Research returns redux: a meta-analysis of the returns to agricultural R&D," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), pages 1-31.
    7. Joseph G. Nagy & W. Hartley Furtan, 1978. "Economic Costs And Returns From Crop Development Research: The Case Of Rapeseed Breeding In Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 26(1), pages 1-14, February.
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    Cited by:

    1. Mywish K. Maredia & Richard Bernsten & Catherine Ragasa, 2010. "Returns to public sector plant breeding in the presence of spill‐ins and private goods: the case of bean research in Michigan," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 425-442, September.
    2. Stavroula Malla & Derek G. Brewin, 2020. "Biotechnology, Crop R&D and Public Policy: The Case of Canola," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 6(2), pages 99-110, April.

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