Public Research Policy for Today's Agricultural Biotech Research Industry

While the public sector has historically played a very significant role in the direct provision of agricultural research, the appropriate role of government in the future is no longer apparent in a world with intellectual property rights (IPRs) and a concentrated privatized biotech research industry. This study develops a search/imperfect competition framework to examine the public role. The analysis shows that private firms have inadequate incentives to invest in research for varietal improvement relative to the social optimum even with completely enforceable IPRs. A government subsidy on research output can efficiently increase the amount of applied research to the socially optimal point. Government subsidy of the research cost can have the same effect on research and development expenditure. Expanding direct applied public research increases social welfare but cannot achieve a social optimum, as it reduces the already limited incentives for private firms to invest. Finally, in situations where basic research is underprovided, government should address these market failures as part of an optimal research policy. Overall, the analysis suggests that there is a role for public support of applied research, but this role is no longer direct public involvement in applied research where IPRs are well established.     

Research and productivity in Thai agriculture

This paper examines the impact that publicly funded agricultural research has on productivity in crop production within Thailand. It tests empirically the two hypotheses that, first, publicly funded research and development (R&D) in crop production is a significant determinant of total factor productivity (TFP) in the crop sector and, second, that its social rate of return is high. The statistical analysis applies error correction methods to national level time series data for Thailand, covering the period 1970–2006. Emphasis is given to public research in crop production, where most publicly funded agricultural R&D has occurred. The role of international research spillovers and other possible determinants of TFP are also taken into account. The results demonstrate that public investment in research has a positive and significant impact on TFP. International research spillovers have also contributed to TFP. The results support the finding of earlier studies that returns on public research investment have been high. This result holds even after controlling for possible sources of upward biases present in most such studies, due to the omission of alternative determinants of measured TFP. The findings raise a concern over declining public expenditure on crop research, in Thailand and many other developing countries.     

On the balance between strategic-basic and applied agricultural research

Strategic-basic research refers to basic research conducted in strategically selected areas expected to be of social benefit. Recent literature on the processes of basic research and its links to applied research has not been widely discussed in relation to agricultural research. This may have important implications for the question of the optimal allocation of research resources. The links are reviewed and combined into a framework for considering the allocation question. A numerical model suggests that only a small number of the model's parameters substantially affect the optimal level of basic research, and that it is not important to identify the optimal solution precisely, since the benefit function is extremely flat around the optimum.     

Structure of Public Support for National Agricultural Research Systems: A Political Economy Perspective

This paper initiates development of a set of stylized facts concerning the structure of public support for national agricultural research systems (NARS) within a neoclassical political economy framework. The aim is to place public funding of NARS in the broader context of the overall level of direct government assistance to agriculture. Using a newly constructed data set on NARS expenditures over the 1970-85 period, we observe a growing disparity in agricultural research intensity ratios, which measure the level of public support for NARS in relation to agricultural gross domestic production (Aggdp ) between low and high-income countries. This growing disparity appears to be driven by much larger increases in support for agricultural research by high-income countries, coupled with a significantly slower growth in the size of their agricultural sector, despite the propensity of low and middle-income countries to increase real support to agricultural research. As per-capita incomes rise the public agricultural expenditure ratio, which measures public expenditures on agriculture relative to the size of the agricultural sector, Aggdp , increases substantially. Public expenditures on agriculture were indexed on agricultural and non-agricultural populations to give a rough indication of the increasing incentives for rural 'distributional coalitions' to seek a redistribution of public expenditures in their favor. A relative research expenditure (rre ) ratio is developed, which measures the proportion of total public expenditure on agriculture spent on agricultural research. It provides an indication of the relative importance given to research on agriculture within the constraints imposed by overall public spending on agriculture. In contrast to the agricultural research intensity ratios, the rre ratios suggest that agricultural research appears to command as large a share of the public purse devoted to agriculture in low and middle-income countries as it does in high-income countries. Expectations derived from the neoclassical political economy literature that research may have fared relatively better in high compared with low-income countries were not supported by the data.     

Public Investment and Industry Incentives in Life-Science Research

Life-science research has shifted rapidly from the public to the private sector, raising questions about government's remaining role. We shed light on the issue by employing a dynamic investment-response model to examine the public's impact on industry life-science research effort and success. We find that government expenditures in both basic biological research and agricultural and medical science create substantial spillovers for private firms. The spillovers are, unfortunately, partly nullified by government competition for scarce research inputs. Yet even after accounting for such competition, public investment has been strongly complementary to private investment. Indeed, opportunities created through public research are the principal source of growth in industry life sciences.     

PRICISM v. STRUCTURALISM IN SUB-SAHARAN AFRICAN AGRICULTURE

A re-examination of data frequently used to support the notion of price discrimination against agriculture in Sub-Saharan Africa suggests that the extent of agricultural taxation has been overstated. In addition, a review of the evidence on the aggregate agricultural supply response to price indicates that elasticities are low, with the most plausible estimates lying in the range 0.2–0.4. Eight structural constraints explaining the poor supply response, to which Sub-Saharan Africa is particularly prone, are identified. Further evidence is presented to show that output responds more significantly to structural factors than to price, and that investment in rural infrastructure will bring about an improved response to price. Capital constraints limit price-induced private investment, so that public sector led investment in new technology and rural infrastructure would appear to be the single most important strategy for reversing the decline in African agriculture.     

Do Formula or Competitive Grant Funds Have Greater Impacts on State Agricultural Productivity?

This article examines the impact of public agricultural research and extension on agricultural total factor productivity at the state level. The objective is to establish whether federal formula or competitive grant funding of agricultural research has a greater impact on state agricultural productivity. A pooled cross-section time-series model of agricultural productivity is fitted to annual data for forty-eight contiguous states over 1970–1999. Our results show that public agricultural research and agricultural extension have statistically significant positive impacts on state agricultural productivity. In addition, Hatch formula funding has a larger impact on agricultural productivity than federal competitive grant funding, and a reallocation of Hatch formula funds to competitive grant funding would lower agricultural productivity. This seems unlikely to be a socially optimal policy. Furthermore, from a cost–benefit perspective, our study shows that the social marginal annualized real rate of return to public resources invested in agricultural research is 49–62%, and to public agricultural extension, the rate is even larger.     

Efficiency of research investments in the presence of international spillovers: wheat research in developing countries⋆

Expenditures on agricultural research in the public sector, including the International Agricultural Research Centers (IARCs) have stagnated and in some cases, declined sharply in recent years. This has focused attention on issues of efficiency of agricultural research systems, especially the number, size, scope, type, and locations of their programs. This paper examines the issue of research efficiency through a case study of wheat improvement research in developing countries. The basic premise of this study is that the optimal level of research investment should be determined in a global model that incorporates direct research spill‐ins. An analytical framework is developed to determine the threshold levels of crop production in a country (or a region within a country) needed to justify crop improvement research programs of different sizes in the presence of spill‐ins from abroad. Spill‐in coefficients are estimated from yield performance of varieties of different origins grown across a range of environments. The model is then applied to analyze the efficiency of current investments in 69 wheat improvement research programs in 35 developing countries. A major conclusion of the paper is that given the magnitude of potential spill‐ins from the international research system, many wheat research programs could significantly increase the efficiency of resource use by reducing the size of their wheat research programs and focusing on the screening of varieties developed elsewhere. ©2000 Elsevier Science B.V. All rights reserved.     

African Agricultural Development: Lessons and Challenges

This paper reviews what has been learned from experiences of African agriculture and hence what policy lessons may be. Views of African agriculture over the last 130 years have changed from optimism to pessimism and at least halfway back again as the performance of the sector has fluctuated. Fortunately it seems the deep pessimism about agricultural prospects expressed in the 1980s and 1990s has receded. The performance of African agriculture since 1990 suggests that neither those who doubt that any significant advances are taking place, nor those who see advances in some remarkable but perhaps isolated cases of rapid transformation of farming and agricultural supply chains, have sufficient evidence – either from national data or small‐scale studies – to support their positions. Hence policy has to rely largely on general principles and historic lessons, rather than more clearly proven propositions. Policy debates over African agricultural development may sharply divide on some topics, but there is little debate over the importance of basic conditions for agricultural development of an enabling investment climate and the provision of rural public goods. Beyond these basics, the challenge is to remedy the failings of markets that deny most smallholders access to inputs, financial services and insurance. Here opinion divides between whether to return to public provision, as with fertiliser subsidies, or whether private and collective institutional innovations will be sufficient. Recent initiatives to test and scale up the latter look promising, but most have yet to be evaluated. If agricultural development is first and foremost about establishing the basic conditions for growth, then most countries in Africa may be better placed than they have been in the past. Given the many examples that show African smallholders investing and innovating when they have the chance, then there are reasons to hope that the modest growth of production and productivity seen in the last two decades may accelerate in the future – thereby allowing African countries to make the transition from agrarian to urban economies.     

An Economic Evaluation of Public Wheat Research and Extension Expenditures in Canada*

The widespread commitment of public funds to agricultural research is being questioned by administrators in governments and by the Canadian public. Questions relating to the level of public expenditure on agricultural research, the efficiency with which the resources are being allocated, and the manner in which the benefits are distributed among members of society art being asked. This study addresses these and related questions as they pertain to publicly funded wheat research activities conducted over the period 1946 to 1979- Two research scenarios were examined - one dealing with the development of new varieties of wheat and the other dealing with all research applicable to the production of wheat. The results revealed that society has indeed benefitted substantially from public investment in wheat research. The level of social benefits averaged $49 and $143 million (measured in 1971 dollars) annually for the wheat breeding and all-wheat research scenarios, respectively. The average annual internal rates of return earned from these public investments ranged between 30 and 39 percent. Furthermore, some evidence was presented that suggests society may, in fact, be underin-vesting in agricultural research in the aggregate. Finally, analyses of the distribution of the benefits showed that both producers and consumers are major beneficiaries.     

Gains to Research in the Presence of Intellectual Property Rights and Research Subsidies

The influx of private investment into crop research, which has accompanied the establishment of intellectual property rights (IPRs) and the introduction of biotechnology, suggests high rates of return. However, the empirical analysis of the canola research sector shows a decline in the total net return to research during a period of increased investment, indicating that net marginal returns to research have been negative. The indication of immiserizing research suggests that the combined effect of IPRs and public incentives has driven the quantity of research beyond the socially optimal level.     

European Agricultural Science Funding: Examining Trends and Prospects

Proper evaluation of the impact of agricultural research requires data on how much has been spent to achieve its desired effects on productivity, efficiency and environmental quality. However, official statistics on aggregate volumes of research expenditure, at both European and national levels, are intermittently available and most data collected for private research are not fully compatible with data for public research. This study in 20 European countries in 2014 defines the different concepts at international level, and assesses coverage across countries, using secondary data and key informant interviews. Coverage is unequal by country and type of measure, the lowest coverage being for agriculture as a socioeconomic objective. We depict recent trends in public agricultural research, which differ by country. We then formulate three policy options and recommendations for their implementation to improve the monitoring of agricultural research investment in Europe: 1) make compulsory in the EU statistical system the collection of statistics on agricultural research expenditure using the same metrics for all sectors of performance; 2) develop a specific survey in the Commission to obtain data directly from research organisations; 3) prepare annual reviews of agricultural research expenditures at Member State level, including both quantitative and qualitative information on agricultural research activities.     

“一带一路”倡议下中国农业企业“走出去”的现状、困境与对策

农业"走出去"是国家"走出去"战略的重要组成部分,也是落实"一带一路"倡议的重要抓手。总体来说,中国农业企业"走出去"是"遍地是黄金,处处是陷阱"。投资区域日趋广泛,集中于中亚地区;投资主体日趋多样,民营企业发展迅速;投资领域日趋多元,加工贸易优势突出;投资经营日趋规范,本土化特征明显;由农产品加工贸易模式向农业技术转移模式转变。但面临着国外政策环境方面的资源困境、技术困境、人才困境、舆论困境,国内政策制度方面的投资审批、种质资源、农产品检验检疫限制,企业经营管理方面的市场竞争环境较激烈、企业国际化能力不强、企业的品牌价值不高、社会责任塑造能力弱,社会服务体系方面的行业信息服务不到位、政府涉外服务不到位等问题。建议政府部门建立和完善推动农业企业"走出去"的支持服务体系,同时,引导和支持农业企业提升"走出去"的投资经营能力。     

The roles of public sector versus private sector in R&D and technology generation: the case of maize in Asia

This paper reports the findings of a study whose objectives were to compare and contrast the public and private sectors in Asia in terms of their (1) estimated level of investment in maize breeding research; (2) germplasm outputs; and (3) nature and extent of roles played in the maize seed industry. Since the 1960s, yield gains, rather than area expansion, have fuelled increases in maize production in Asia. Yield gains, in turn, have been due to the shift in maize cultivation from mostly open‐pollinated varieties (OPVs) to mostly hybrids. This transition also shifted the locus of modern maize breeding research from government research organisations to private national and multinational seed companies. In countries where both the public and private sectors participated in maize research, private sector research investment far exceeded that of the public sector. With more aggressive marketing programmes, the private sector captured 89% of the Asian maize seed market in the late 1990s. National public seed research agencies (including universities and cooperatives) developed and produced more maize OPVs than hybrids, mass‐produced and distributed seed cheaply, addressed location‐specific production problems, and provided agricultural extension services. The private seed companies developed, produced, sold and promoted their own proprietary hybrids. The reluctance of the private sector, however, to address the needs of marginal maize farmers should encourage the public sector to continue playing an active role in maize research and development (R&D), seed production and modern maize technology dissemination, especially with adequate support from appropriate government policies.     

The rise and fall of public sector plant breeding in the United Kingdom: a causal chain model of basic and applied research and diffusion

This paper examines the barley and wheat breeding programmes of the Plant Breeding Institute (PBI), which was the most successful public plant breeding institute in the UK, until privatization in 1987. The PBI's shares in barley and wheat seed sales are explained, showing that the success with barley was largely a matter of serendipity, whereas the wheat programme followed a more normal pattern. For wheat, the causal chain, or recursive, model decomposes the well-documented link between research expenditures and increases in agricultural productivity into three stages. These are the effects of R&D expenditures on basic research output, measured by publications, the effect of publications and applied R&D expenditures on trial plot yields, and the diffusion of the trial plot technologies, which raises yields on farms. Applying the model to the FBI's wheat varieties allows estimation of the lag structures. In contrast to the results for aggregate agricultural research, for a single plant breeding programme alone there is a considerable lead time before there is any response, followed by a lag distribution only a few years long. The returns to the R&D investments are calculated from the causal chain model, from single equation estimates and by evaluating the yield advantage of the PBI varieties. All three approaches give consistent results, which show that the returns to barley and wheat alone were sufficient to support the entire PBI budget and still give rates of return to applied research of between 14 and 25%. The return to the basic science expenditures of the John Innes Institute has a lower bound of 17%, but must have been even higher than for the PBI if the other Institutes were taken into account. The paper concludes by commenting on the effects of the privatization of the PBI.     

The benefits from public agricultural research in Uruguay

We use newly constructed data to model and measure agricultural productivity growth and the returns to public agricultural research conducted in Uruguay over the period 1961–2010. We pay attention specifically to the role of levy‐based funding under INIA, which was established in 1990. Our results indicate that the creation of INIA was associated with a revitalization of funding for agricultural R&D in Uruguay, which spurred sustained growth in agricultural productivity during the past two decades when productivity growth was stagnating in many other countries. The econometric results were somewhat sensitive to specification choices. The preferred model includes two other variables with common trends, a time‐trend variable and a proxy for private research impacts, as well as a variable representing the stock of public agricultural knowledge that entailed a lag distribution with a peak impact at year 24 of the 25‐year lag. It implies a marginal benefit‐cost ratio of 48.2, using a real discount rate of 5 per cent per annum and a modified internal rate of return of 24 per cent per annum. The benefit‐cost ratio varied significantly across models with different lag structures or that omitted the trend or the private research variable, but across the same models, the modified internal rate of return was very stable, ranging from 23 per cent per annum to 27 per cent per annum. These results suggest that the revitalized investment in research spending under INIA has been very profitable for Uruguay and that a greater rate of investment would have been justified.     

现代农业产业园科技支撑体系建设现状、存在问题及对策

[目的]科技支撑是生产体系现代化的重要内容。而现代农业产业园作为农业先进生产力的代表，按照“生产+加工+科技”一体化发展要求，有效推动现代农业产业园发展，完善科技支撑体系建设是亟需解决的问题。[方法]文章以批准创建的200家国家现代农业产业园为研究对象，分析产业园科技支撑体系建设现状、存在问题及对策。[结果]截至2021年底，200个国家现代农业产业园组建主导产业专家团队约2 000多个、平均每个产业园约10个；农作物耕种收的综合机械化率平均值达到80%以上；50多个建立了大数据中心，实现生产技术服务全过程数字化管理。但科技支撑体系建设仍存在农业科技研发投入不足、农业科技资源集聚不足、农业科技体制机制不完善、农业科技人才缺乏等问题。[结论]提出应强化农业科技研发和投入、建设农业科技创新联盟、强化农业科技创新和科技成果转化服务、构建全产业链经营模式、加大引进农业科技人才等五个方面对策建议，以期为完善现代农业产业园科技支撑体系建设提供帮助。     

Intervention bias in agricultural policy

This paper re-examines the motivation for government intervention in agriculture to support farm prices and incomes. A model is outlined in which the government has a preference for higher farm incomes but fails to provide farmers with the socially optimal level of price support, even when one accepts the government's income redistribution goals as a valid reflection of social preference. It is shown that agricultural policy has an intervention bias: government price supports generally are higher than would be socially optimal. The source of the intervention bias is a time inconsistency in optimal agricultural policy formation, caused by the government's inability to precommit to a rule for setting future price support levels. Simulation results indicate that in some circumstances the intervention bias in agricultural policy can be substantial.     

Productivity effects of CAP investment support: Evidence from Sweden using matched panel data

This paper studies the effects of investment support from the common agricultural policy on labour and total factor productivity of agricultural firms in Sweden. Detailed firm-level data on 34 300 firms are used to estimate a matched panel model that relates firm productivity to a series of factors reflecting internal and external characteristics. The recently developed Coarsened Exact Matching method is used to estimate matched control groups and handle selection bias. Findings show a positive and significant treatment effect of investment support on firm productivity, but only for small firms. The analysis also reveals that an increase in the size of the support in relation to firm income has a negative and significant impact on productivity for all firms. Differentiating between various types of investment supports indicates heterogeneous treatment effects. The policy instrument can improve its efficiency if targeted to small firms and investments that have a link to public good provision.     

安徽省农业生产效率的测度与分析

农业是国民经济建设与发展的基础产业,农业生产率是衡量一个国家和地区农业生产水平的重要指标。文章以安徽省地级市的农业产值为研究对象,运用调整后农业投入产出数据,采用超效率DEA模型和Malmquist指数法测算2008-2018年地级市农业生产效率。结果表明:当前安徽省只有少数地级市农业生产效率达到有效,大部分地级市农业生产效率处于增长状态,存在较大发展潜力;另外,各地级市由于技术进步水平和生产规模等不同,农业生产效率也具有较大差异。基于此,安徽省应加大农业发展投入,各地级市需因地制宜提升农业生产效率,促进农业稳定发展。