Private Sector Incentives and the Diffusion of Agricultural Technology: Evidence from Developing Countries

Abstract

The role of intellectual property rights (IPRs) has been extensively debated in the literature on technology transfers and agricultural productivity growth in developing countries. However, few studies offer cross-country evidence on how IPRs affect yield growth by incentivising private sector investment in cultivar improvement. We address this knowledge gap by testing technology diffusion patterns for six major crops using a unique dataset for the period 1961–2010 and an Arellano–Bond linear dynamic panel-data estimation approach. Findings indicate that biological and legal forms of IPRs promote yield gap convergence between developed and developing countries, although effects vary by crop.