Welfare Impacts of Intellectual Property Protection in the Seed Industry

Posted: 16 Feb 2007

See all articles by Sergio H. Lence

Sergio H. Lence

Iowa State University - Department of Economics

Dermot J. Hayes

Iowa State University - Center for Agriculture and Rural Development (CARD)

Alan McCunn

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

Stephen Smith

Pioneer Hi-Bred International, Inc.

William S. Niebur

Pioneer Hi-Bred International, Inc.

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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.

Suggested Citation

Lence, Sergio H. and Hayes, Dermot James and McCunn, Alan and Smith, Stephen and S. Niebur, William, Welfare Impacts of Intellectual Property Protection in the Seed Industry. American Journal of Agricultural Economics, Vol. 87, No. 4, pp. 951-968, November 2005, Available at SSRN: https://ssrn.com/abstract=963675 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 James Hayes

Iowa State University - Center for Agriculture and Rural Development (CARD) ( email )

Ames, IA 50011
United States
515-294-6185 (Phone)

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 International, Inc. ( email )

7300 NW 62nd Avenue
Johnston, IA 50131
United States
515-270-3353 (Phone)

William S. Niebur

Pioneer Hi-Bred International, Inc.

7300 NW 62nd Avenue
Johnston, IA 50131
United States

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