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The Economic Value of Patents, Licenses, and Plant Variety Protection

Author

Listed:
  • Rausser, Gordon C.
  • Small, Arthur A.

Abstract

While biotechnology creates new opportunities for agriculture, developments are impeded by confusion in the system for awarding intellectual property rights (IPRs) over agro-biotechnological innovations. An intelligent redesign of the IPR system requires attention to how the definition of rights interacts with the market environment, generating incentives to create value. A distinction is drawn between cost-reducing innovations that increase the efficiency of producing homogeneous outputs and value-adding innovations that create entirely new types of differentiated outputs. A reform is proposed that would require the mandatory sublicensing of genes and certain core enabling technologies for creating genetically altered organisms.

Suggested Citation

  • Rausser, Gordon C. & Small, Arthur A., 1996. "The Economic Value of Patents, Licenses, and Plant Variety Protection," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5bv0h963, Department of Agricultural & Resource Economics, UC Berkeley.
    • Handle: RePEc:cdl:agrebk:qt5bv0h963
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