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Market size and innovation: An application to the French seed market for large crops

Author

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  • Sylvie Charlot

    (GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique)

  • Chokri Dridi

    (IDP - Institut du Développement et de la Prospective - EA 1384 - UVHC - Université de Valenciennes et du Hainaut-Cambrésis - IAE - Institut d'Administration des Entreprises - UPHF - Université Polytechnique Hauts-de-France)

  • Stephane Lemarié

    (GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique, INRA - Institut National de la Recherche Agronomique)

Abstract

The aim of this paper is to analyse the impact of market size on innovation in the seed industry. The analysis is based on a panel dataset that covers 19 large crops in France during the period 1989-2012. Our econometric analysis is based on a negative binomial specification and we conduct both cross section as well as panel data analysis. We show that the French crop area always has a positive and significant effect on the number of innovations introduced each year. Market size of foreign countries may be either positive or negative revealing synergy or substitution effects. When hybrid crops are considered, the innovation is mainly determined by a positive and very significant fixed effect, crop area having no more influence. This last result can be interpreted as market size being mainly dependent on crop area for non-hybrid crop and dependent of price mark-up for hybrid crops.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Sylvie Charlot & Chokri Dridi & Stephane Lemarié, 2015. "Market size and innovation: An application to the French seed market for large crops," Post-Print hal-02091175, HAL.
    • Handle: RePEc:hal:journl:hal-02091175
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    References listed on IDEAS

    as
    1. Fernandez-Cornejo, Jorge, 2004. "The Seed Industry In U.S. Agriculture: An Exploration Of Data And Information On Crop Seed Markets, Regulation, Industry Structure, And Research And Development," Agricultural Information Bulletins 33671, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Lemarié, Stéphane & Parenty, Sébastien, 2016. "Research incentives and tradeoff for improving productivity of different crops," 149th Seminar, October 27-28, 2016, Rennes, France 245161, European Association of Agricultural Economists.

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    More about this item

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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