Welfare Impacts of Intellectual Property Protection in the Seed Industry

18 Pages Posted: 21 Apr 2020

See all articles by Sergio H. Lence

Sergio H. Lence

Iowa State University - Department of Economics

Dermot J. Hayes

Iowa State University

Alan McCunn

Pioneer Hi-Bred International, Inc.; Iowa State University - Department of Economics

Stephen Smith

Pioneer Hi-Bred

William S. Niebur

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: November 2005

Abstract

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.

Keywords: GURT, incentives to innovate, intellectual property rights, seed industry, technology innovation, welfare, terminator gene

Suggested Citation

Lence, Sergio H. and Hayes, Dermot J. and McCunn, Alan and Smith, Stephen and Niebur, William S., Welfare Impacts of Intellectual Property Protection in the Seed Industry (November 2005). American Journal of Agricultural Economics, Vol. 87, Issue 4, pp. 951-968, 2005, Available at SSRN: https://ssrn.com/abstract=3581158 or http://dx.doi.org/10.1111/j.1467-8276.2005.00780.x

Sergio H. Lence (Contact Author)

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

Dermot J. Hayes

Iowa State University

613 Wallace Road
Ames, IA 50011-2063
United States

Alan McCunn

Pioneer Hi-Bred International, Inc.

Des Moines, IA
United States

Iowa State University - Department of Economics

260 Heady Hall
Ames, IA 50011
United States

Stephen Smith

Pioneer Hi-Bred

7300 NW 62nd Avenue
Johnston, IA 50131
United States

William S. Niebur

affiliation not provided to SSRN

No Address Available

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