Intellectual Property Rights and the Welfare Effects of Agricultural R…D

14 Pages Posted: 31 Mar 2020

See all articles by GianCarlo Moschini

GianCarlo Moschini

Iowa State University - Department of Economics

Harvey Lapan

Iowa State University

Date Written: November 1997

Abstract

We review intellectual property rights in agriculture and outline a modeling framework that accounts for relevant institutional features of agricultural R…D. The analysis emphasizes vertical market linkages whereby agricultural innovations adopted by farmers are produced upstream by input suppliers. It is argued that the conventional assumption of competitive pricing cannot hold when new technologies are produced by private firms because such innovations are typically protected by intellectual property rights (such as patents) that confer (limited) monopoly rights to discoverers. The implications of intellectual property rights for the welfare evaluation of agricultural R…D are derived, and it is shown that conventional methods usually overestimate the welfare gains from agricultural innovations.

Keywords: agricultural innovations, consumer surplus, input markets, patents, producer surplus, O340, Q160

Suggested Citation

Moschini, GianCarlo and Lapan, Harvey, Intellectual Property Rights and the Welfare Effects of Agricultural R…D (November 1997). American Journal of Agricultural Economics, Vol. 79, Issue 4, pp. 1229-1242, 1997, Available at SSRN: https://ssrn.com/abstract=3563144 or http://dx.doi.org/10.2307/1244280

GianCarlo Moschini (Contact Author)

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

Harvey Lapan

Iowa State University

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