Innovation on the seed market: the role of IPRs and commercialisation rules

Marc Baudry and Adrien Hervouet ()

Working Papers from Chaire Economie du climat

Abstract: This article deals with the impact of legislation in the seed sector on incentives for variety creation. The first category of rules consists in intellectual property rights and is intended to address a problem of sequential innovation and R&D investments. The second category concerns commercial rules that are intended to correct a problem of adverse selection. We propose a dynamic model of market equilibrium with vertical product differentiation that enables us to take into account the economic consequences of imposing either Plant Breeders’ Rights (PBRs) or patents as IPRs and either compulsory registration or minimum standards as commercialisation rules. The main result is that the combination of minimum standards and PBRs (patents) provides higher incentives for sequential and initial innovation and may be preferred by a public regulator when sunk investment costs are low (high) and the probability of R&D success is sufficiently high (low).

Keywords: Intellectual Property Rights; Plant Breeders’ Rights; Catalogue; Product differentiation; Seed market; Biodiversity (search for similar items in EconPapers)
JEL-codes: D43 K11 L13 Q12 Q16 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2014
New Economics Papers: this item is included in nep-agr, nep-com, nep-ino, nep-ipr, nep-pr~ and nep-law
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http://www.chaireeconomieduclimat.org/RePEc/cec/wp ... dry-and-Hervouet.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: Innovation in the Seed Market: The Role of IPRs and Commercialization Rules (2016)
Working Paper: Innovation in the seed market: the role of IPRs and commercialization rules (2016)
Working Paper: Innovation on the seed market: the role of IPRs and commercialisation rules (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cec:wpaper:1411

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