Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/239771 
Year of Publication: 
2016
Citation: 
[Journal:] Administrative Sciences [ISSN:] 2076-3387 [Volume:] 6 [Issue:] 4 [Publisher:] MDPI [Place:] Basel [Year:] 2016 [Pages:] 1-11
Publisher: 
MDPI, Basel
Abstract: 
Private sector research and development (R&D) in food processing has seen a growing share of agricultural R&D. This paper analyzes market and technological links between farmer-entrepreneurs and food processing firms. It is shown that processing sector R&D tends to display explosive cycles. To avoid explosive cycles, the processing sector sets the R&D growth path and its target. Dynamic adjustments are related to the shadow price of R&D and farm output price. In equilibrium, the effects of increases in technological innovations (e.g., at the farm level, in public agricultural research, from entrepreneurial talent, in processing sector R&D, and in the price of final goods) on agricultural price and output are positive. The patent race does not affect steady-state agricultural price and output, nor processing sector R&D; it only reduces the opportunity cost of R&D.
Subjects: 
agricultural innovations
research and development cycles
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article
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