This chapter develops a theoretical model to analyse the impacts of intellectual property rights (IPRs) policy options on innovation in the plant breeding sector and social welfare. First, some relevant strands of the literature on the scope of IPR protection are reviewed. The theoretical model is then presented, in which a phased-in breeders' exemption is interpreted as affecting the cost functions for breeders. Numerical simulations in the subsequent section illustrate how a phased-in breeders' exemption may drive competitors out of the market while still leaving the leading firm with little incentive to increase investment.
|Title of host publication||International trade and policies for genetically modified products|
|Editors||R.E. Evenson, V. Santaniello|
|Place of Publication||Wallingford, UK|
|Publication status||Published - 2006|