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

Adrien Hervouet () and Marc Baudry

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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; Droits de Propriété Intellectuelle; Certificats d'Obtention Végétale; Différentiation des produits; marché des semences; Biodiversité (search for similar items in EconPapers)
Date: 2014-09-03
New Economics Papers: this item is included in nep-agr, nep-cse, nep-ger, nep-ino, nep-ipr, nep-pr~, nep-knm and nep-tid
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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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