Plant Variety Protection, Private Funding, and Public Sector Research Priorities

Abstract

The objective of the Plant Variety Protection Act of 1970 (PVPA) was to increase a firm's ability to capture the returns on its applied breeding research and development (R&D) investments. Firms were expected to increase their R&D investments to take advantage of increased returns. Studies have shown that the PVPA has induced the private sector to increase its investments, particularly in soybeans and wheat (Butler and Marion; Perrin, Kunnings, and Ihnen). Recently, Stallman raised the concern that the PVPA may also influence agricultural experiment stations (SAES). She suggests that public R&D priorities may be shifted away from commodities and research topics that have high social rates of return.