Innovation and Intellectual Property Rights

Abstract

As a contribution to the open debate regarding the effect of Intellectual Property Rights (IPRs) on innovation, this chapter postulates that the adoption of strong IPRs is not a necessary condition to foster innovation in the plant breeding industry. The chapter studies the evolution of the soybean breeding industry in the US and Argentina and shows that regardless the level of intellectual property protection, if there is an attractive and profitable market, firms may search for different appropriability strategies rather than changing their innovative behavior. The chapter finds that the growth rates of new soybean varieties are similar in both countries and the adoption rate is faster in Argentina where the IPRs system is weaker.

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