Induced innovation and spillover effects of US and Canadian research expenditures in Canadian agriculture

Qingsong Tian, Lukas Cechura, J. Stephen Clark and Yan Yu

Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 2023, vol. 71, issue 2, 153-169

Abstract: This study examines the induced innovation hypothesis (IIH) from 1958 to 2015 for two Canadian agriculture regions: Central Canada (the provinces of Ontario and Quebec) and Western Canada (the provinces of Alberta, Saskatchewan and Manitoba). There is broadly consistent support for the IIH for Canadian agriculture, especially for Western Canadian agriculture. In addition, there is support for the notion that US, as well as Canadian, research expenditures are important to explain changes in the input ratio in Canadian agriculture in the long run. This indicates the existence of spillover effects from US agricultural research expenditures to Canadian agriculture. Cette étude examine l'hypothése d'innovation induite (IIH) de 1958 à 2015 pour deux régions agricoles canadiennes : le centre du Canada (les provinces de l'Ontario et du Québec) et l'ouest du Canada (les provinces de l'Alberta, de la Saskatchewan et du Manitoba). L'IIH bénéficie d'un soutien généralement constant pour l'agriculture canadienne, en particulier pour l'agriculture de l'Ouest canadien. De plus, certains appuient l'idée que les dépenses de recherche aux États‐Unis, tout comme au Canada, sont importantes pour expliquer les variations à long terme du ratio des intrants dans l'agriculture canadienne. Cela indique l'existence d'effets d'entraînement des dépenses de recherche agricole aux États‐Unis sur l'agriculture canadienne.

Date: 2023
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