THE BUTCHER THE BAKER THE PHARMACEUTICAL MAKER: WHY THE AGRICULTURAL BIOTECH INDUSTRY MAY DIFFER FROM THE GENERAL BIOTECH INDUSTRY

This paper explores the apparent anomaly in the patenting strategies found in the agricultural biotechnology industry, when it is compared to the literature's view of the patenting strategies in the general biotechnology industry and in the pharmaceutical industry in particular. By extending an extensive game model of the agriculture biotechnology industry, we show that, like the rest of the biotechnology industry, the integration of the agriculture biotechnology industry into several large private research firms with accompanying government laboratories can be transactions-costs limiting and thus efficient, given the existing institutional structure. A review of the literature respecting the general biotechnology industry reveals an apparent anomaly between the general industry and our findings with respect to the Canadian agricultural biotechnology industry. The literature seems to suggest, as one might expect, that the choice of patenting strategy in the general industry is dependent upon a positive probability of litigation over opportunistic patenting strategies, with the probability of facing litigation being dependent on the type of patenting strategy adopted. In contrast, we found general opportunistic patenting strategies in the Canadian agricultural biotechnology industry, independent of potential litigation. A comparison of the income elasticities of demand for food compared to other biotechnological products, particularly pharmaceuticals, can account for the apparent differences. We briefly assess the policy implications of these observations, particularly examining why the manner in which publicly funded research programs compensate the inventors of the intellectual property that they control may limit the incentives for these programs to control the apparent opportunistic behavior we perceive in the agricultural biotechnology research sector.Research and Development/Tech Change/Emerging Technologies,

TECHNOLOGICAL FIELDS AND CONCENTRATION OF INNOVATION AMONG FOOD AND BEVERAGE MULTINATIONALS

With a sample of nearly 18,611 utility patents, this paper studies the technology mix of 90 of the world's leading food and beverage multinationals (FBMs) over 1969-1994. It explores the statistical association between patenting in food technology and in non-food technological fields. Food patenting is always associated with patenting in Biotech, Chemistry, Machinery and Other patenting, whatever the home country of the company. The strength of the association, however, could vary. Herfindahl indices show that capabilities in core technology and in Machinery and Other fields are spread among many FBMs. Though to a lesser extent, technical capabilities in Biotechnology, Packaging and Refrigeration are also dispersed. By contrast, patenting in Tobacco, Chemistry and Drugs is concentrated.Agribusiness, Research and Development/Tech Change/Emerging Technologies,

Trends in University Ag-Biotech Patent Production

This work exploits information on U.S. patents to identify trends in university ag-biotech patenting and citation performance. It sets forth some key issues concerning patterns of university ag-biotech patenting and then provides an empirical analysis on the evolving trends. Land Grant Universities account for most U.S. agbiotech patents. The data show a path dependent innovation pattern, in which there also seems to be a culture of patenting that develops at certain universities. Evidence shows that ag-biotech patents are more cited than the average university patent. Inequalities across Land Grant Universities are also evident in the production of agbiotech patents, although perhaps not to a much greater degree than underlying inequalities in funding and research qualities. The paper closes by considering how the evidence offered might be used to advance the public discussion regarding trends in agricultural biotechnology research in the U.S.Research and Development/Tech Change/Emerging Technologies,

Fostering innovation in a small open economy: The case of the New Zealand biotechnology sector

The New Zealand Biotechnology sector is worthy of study for several reasons. While there is a large and growing international literature on economic aspects of biotechnology innovation these studies concentrate on the United States and Europe. The New Zealand biotechnology sector may be expected to develop along a different trajectory as a consequence of a markedly different set of initial and framework conditions. Government has indicated a strong interest in fostering innovation and aims to concentrate on selected areas where New Zealand may be able to develop a new comparative advantage. One such area is biotechnology, which would build on New Zealand’s existing comparative advantage in the primary sector (dairy, forestry, meat, wool and horticulture). This paper describes the preliminary results of an ongoing study that aims to fill some of the gaps in our knowledge of innovation processes in New Zealand while using the international literature as a benchmark. The paper focuses on the drivers of innovation in the biotechnology sector; the role of networks and other linkages; the role of government and industry, the role of human and venture capital, and data from patenting

TRENDS IN UNIVERSITY AG-BIOTECH PATENT PRODUCTION

This work exploits information on U.S. patents to identify trends in university ag-biotech patenting and citation performance. It sets forth some key issues concerning patterns of university ag-biotech patenting and then provides an empirical analysis on the evolving trends. Land Grant Universities account for most U.S. ag-biotech patents. The data show a path dependent innovation pattern, in which there also seems to be a culture of patenting that develops at certain universities. Evidence shows that ag-biotech patents are more cited than the average university patent. Inequalities across Land Grant Universities are also evident in the production of ag-biotech patents, although perhaps not to a much greater degree than underlying inequalities in funding and research qualities. The paper closes by considering how the evidence offered might be used to advance the public discussion regarding trends in agricultural biotechnology research in the U.S.Research and Development/Tech Change/Emerging Technologies,

Local Nodes in Global Networks: The Geography of Knowledge Flows in Biotechnology Innovation

The literature on innovation and interactive learning has tended to emphasize the importance of local networks, inter-firm collaboration and knowledge flows as the principal source of technological dynamism. More recently, however, this view has come to be challenged by other perspectives that argue for the importance of non-local knowledge flows. According to this alternative approach, truly dynamic economic regions are characterized both by dense local social interaction and knowledge circulation, as well as strong inter-regional and international connections to outside knowledge sources and partners. This paper offers an empirical examination of these issues by examining the geography of knowledge flows associated with innovation in biotechnology. We begin by reviewing the growing literature on the nature and geography of innovation in biotechnology research and the commercialization process. Then, focusing on the Canadian biotech industry, we examine the determinants of innovation (measured through patenting activity), paying particular attention to internal resources and capabilities of the firm, as well as local and global flows of knowledge and capital. Our study is based on the analysis of Statistics Canada’s 1999 Survey of Biotechnology Use and Development, which covers 358 core biotechnology firms. Our findings highlight the importance of in-house technological capability and absorptive capacity as determinants of successful innovation in biotechnology firms. Furthermore, our results document the precise ways in which knowledge circulates, in both embodied and disembodied forms, both locally and globally. We also highlight the role of formal intellectual property transactions (domestic and international) in promoting knowledge flows. Although we document the importance of global networks in our findings, our results also reveal the value of local networks and specific forms of embedding. Local relational linkages are especially important when raising capital—and the expertise that comes with it—to support innovation. Nevertheless, our empirical results raise some troubling questions about the alleged pre-eminence of the local in fostering innovation

Patenting Living Matter in the European Community: Diriment of the Draft Directive

This article attempts to disentangle the mire of European patent authority and provide some picture of how the ultimate resolution of the proposed EC Directive will appear. Part I contains introductory and background materials on the biotech industry and the importance of patent protection to the future proliferation of technological innovation. Part I exposes current issues in the scientific and political realms of biotech patent law as well as the standard justifications for recognizing inventors rights, considerations that are presently shaping the debate in Europe. Part II attempts to ground the reader in the fundamentals of biotechnology patent laws as developed in the United States in order to provide a basic conceptual foundation for comparing and evaluating the bodies of European law. This section begins by introducing the basic statutory terminology before turning to a discussion of the landmark United States Supreme Court opinion in Diamond v. Chakrabarty, where the Court held that genetically altered living matter may be patented.8 The remainder of the section traces the legal developments spawned by the Chakrabarty decision. Part III begins with an introduction of the various bodies purporting to govern patent rights in Europe and attempts to resolve the supremacy issues among them. Attention then shifts to the proposed Council Directive on biotech patents: the procedures for its adoption, the political forces shaping the debate of life patents in Europe, and the important proposals for amending the original draft. Finally, this article will speculate on the ultimate resolution of the Draft Directive as a united system of patent laws for the European Community Member States

High-quality patents for emerging science and technology through external actors: community scientific experts and knowledge societies

This article explores one type of administrative mechanism to achieve high-quality patents: Article 115 of the European Patent Convention, which permits the inclusion of third parties to provide input to the prior art search and to communicate relevant information to the examiner in charge. Our empirical research analyzes the field of human genetic inventions. The empirical findings here show that third parties usually participate only after patents have been granted. Between 1999 and 2009, only a limited number of human gene patent cases made use of third-party, pre-grant interventions. There is thus an imbalance between third-party participation in the pre- and post-grant phase of patent prosecution, and we urge for greater participation of knowledge communities in the search and examination process. Europe should create a funnel for participation through advisory bodies and learned societies, which would allow judicious consideration of the search and examination, with a resultant improvement in patent quality