189
and public-private research partnerships. After the 1960s, many developed nations
saw a shift in research to focus more on the environmental impacts of agricultures,
food safety, and energy uses of agriculture and away from traditional yield and output improvements (Pardey and Alston 2012).
While government-sponsored R&D has been in decline, there has been a more
dramatic increase in private agricultural R&D investments (Fig. 7.7). In 2000, over
55% of agricultural R&D spending in developed countries was through private
organizations, an increase of 44% from 1981. In contrast, in developing nations
only 6.4% of R&D expenditures are from the private sector with major disparities
between regions and countries. The lack of domestic large-scale agricultural companies has been part of the reason for the low proportional investment. But the
abundance of small and local farm operations makes large-scale agricultural
research and investments more difficult. Most developing nations, apart from Brazil,
China, and India, are falling behind in agricultural investments, creating a larger gap
between the advanced and developing nations’ agricultural capabilities.
Further complicating the reduced investments by developing nations is the nature
of agricultural innovation itself. Most improvement technologies used for smallholder farms are either mechanical or chemical applications, both of which tend to
be protected by intellectual property rights and patents. This often makes the specific technology application cost prohibitive to smaller farmers in developing
nations. Being coupled with the new focus by developed nations away from agricultural productivity toward environmental protection and food safety means that many
of the newer innovations may be less applicable to developing economies. This is
Fig. 7.7 Public agriculture research as a percentage of total public research. (Source: https://www.
ers.usda.gov/webdocs/publications/89114/err-249.pdf?v=43244. Heisey, Paul W., and Keith
O. Fuglie. Agricultural Research Investment and Policy Reform in High-Income Countries,
ERR-249. U.S. Department of Agriculture, Economic Research Service, May 2018 Agricultural
Research Investment and Policy Reform in High Income Countries, USDA May 2018, DC Donnan
analysis)
7 Innovation and the Quest to Feed the World
and public-private research partnerships. After the 1960s, many developed nations
saw a shift in research to focus more on the environmental impacts of agricultures,
food safety, and energy uses of agriculture and away from traditional yield and output improvements (Pardey and Alston 2012).
While government-sponsored R&D has been in decline, there has been a more
dramatic increase in private agricultural R&D investments (Fig. 7.7). In 2000, over
55% of agricultural R&D spending in developed countries was through private
organizations, an increase of 44% from 1981. In contrast, in developing nations
only 6.4% of R&D expenditures are from the private sector with major disparities
between regions and countries. The lack of domestic large-scale agricultural companies has been part of the reason for the low proportional investment. But the
abundance of small and local farm operations makes large-scale agricultural
research and investments more difficult. Most developing nations, apart from Brazil,
China, and India, are falling behind in agricultural investments, creating a larger gap
between the advanced and developing nations’ agricultural capabilities.
Further complicating the reduced investments by developing nations is the nature
of agricultural innovation itself. Most improvement technologies used for smallholder farms are either mechanical or chemical applications, both of which tend to
be protected by intellectual property rights and patents. This often makes the specific technology application cost prohibitive to smaller farmers in developing
nations. Being coupled with the new focus by developed nations away from agricultural productivity toward environmental protection and food safety means that many
of the newer innovations may be less applicable to developing economies. This is
Fig. 7.7 Public agriculture research as a percentage of total public research. (Source: https://www.
ers.usda.gov/webdocs/publications/89114/err-249.pdf?v=43244. Heisey, Paul W., and Keith
O. Fuglie. Agricultural Research Investment and Policy Reform in High-Income Countries,
ERR-249. U.S. Department of Agriculture, Economic Research Service, May 2018 Agricultural
Research Investment and Policy Reform in High Income Countries, USDA May 2018, DC Donnan
analysis)
7 Innovation and the Quest to Feed the World