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Welfare Impacts of Intellectual Property Protection in the Seed Industry
Author(s) -
Lence Sergio H.,
Hayes Dermot J.,
McCunn Alan,
Smith Stephen,
Niebur William S.
Publication year - 2005
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2005.00780.x
Subject(s) - intellectual property , welfare , productivity , product (mathematics) , economics , business , industrial organization , mathematics , market economy , computer science , geometry , macroeconomics , operating system
We examine the welfare impact of different intellectual property protection (IPP) regimes in private sector seed research and development (R&D). We take into account the period after expiration of legal IPP, and require simultaneous equilibrium in markets for R&D, seeds, and final product. Optimal IPP is remarkably insensitive to alternative parameterizations, except for R&D productivity. Results suggest that optimal IPP is greater than IPP in the U.S. seed corn market, but lower than the IPP that could be attained with genetic use restriction technologies. Optimal IPP is much higher than IPP achieved under open‐pollinated crops or where legal IPP is limited.