The Role of Technology Spillovers and Economies of Size in the Efficient Design of Agricultural Research Systems

Abstract

This paper reviews the efficient design of research systems-that is, the number, type. size, and location of research programs-—as functions of the potential for spillovers and spillins, and economies of size in research. Spillovers are found to be pervasive in agricultural technology generation, with greater potential for spillovers among biological technologies than previously believed. The paper also finds little empirical support for economies of size in producing varietal technologies. However, in a manifestation of the “small-country problem, market size are found to be critical in determining research efficiency”. The paper concludes with implications for policies to enhance research efficiency. For many types of research there is a strong case for central research programs ai the national, regional and international level whose mandate cuts across political boundaries to exploit agroecological similarities, and achieve economies of market size. However, innovative approaches are required to fund such programs.

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