Economic impact of farming innovations: Arbitration between hybrid and inbred line in the seed sector Arbitration between hybrid and inbred line in the seed sector

Stefan Ambec and Stephane Lemarie

INRAE Sciences Sociales, 2006, vol. 2006, 6

Abstract: Innovations concerning crop seeds essentially stem from private research. Seed companies may appropriate a larger part of the economic profits from innovation by choosing to create hybrid seeds rather than inbred line seeds. Yet this technological choice also has an impact in terms of efficiency since production costs differ according to the type of seed. This text surveys research work in which we show that, from an economic viewpoint, in some cases, firms’ technological choices may entail a loss. We also show that this loss is reduced by implementing a tax on on-farm-produced seeds from inbred-line seeds, like the “contribution volontaire obligatoire” (compulsory voluntary contribution) (CVC) in the case of wheat in France.

Keywords: Agricultural and Food Policy; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:inrass:157448

DOI: 10.22004/ag.econ.157448

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