Intellectual Property Protections of Genetically Modified Organisms: Implications for Technology Transfers

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This chapter examines intellectual property protections of genetically modified organisms (GMOs).  Specifically, I consider how country differences in intellectual property rights (IPRs) affect transfers of GMO technologies both within and across countries.  While country-level research on IPRs and technology transfers is located prominently in the International Economics literature, research on GMOs is in the Agricultural Economics literature.  These literatures have evolved independently with few linkages.  Thus, I begin by identifying stylized facts from these literatures and consider the implications of these stylized facts for GMO adopting countries.  Second, I examine country-level data on GMO land use, trade, regulations, and IPRs to identify patterns of economic behavior consistent (or inconsistent) with the stylized facts.  Third, I develop a framework that characterizes transfers of GMO technologies both within and across countries which differ in their strength of IPRs.  This framework accounts for the unique characteristics of the GMO technology including self-replication and diffusion of the technology by acts of nature.

Citation:

Smith, Pamela J.  2024. Intellectual property protections of genetically modified organisms:  Implications for technology transfers.  In Handbook of innovation and intellectual property rights:  Evolving scholarship and reflections, ed. Walter G. Park, 342-373.  Cheltenham, UK:  Edward Elgar Publishing.

Determinants of comparative advantage in GMO-intensive industries

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This paper examines the supply-side determinants of international trade in crops that are intensive in genetically modified organisms (GMOs). The theoretical framework is a variant of the Heckscher-Ohlin model which we estimate using cross-country data for 1995 and 2010 to examine soybeans, maize, and cotton trade. The data include measures of country land endowments which we disaggregate into GMO and non-GMO components, as well as recently released measures of GMO regulations. Findings show land endowments are a primary source of comparative advantage in GMO intensive industries before and after the advent of GMOs. Further, an increase in a country’s allocation of land to GMO crops has a positive effect on her net exports in GMO intensive industries. This positive effect occurs both across countries and time. Finally, a country’s GMO regulations have a negligible effect as a supply-side determinant of comparative advantage. However, a country’s decision about whether to adopt GMO technologies does matter to trade. These findings are robust with respect to a variety of considerations.

Citation:

Smith, Pamela J., Bolormaa Jamiyansuren, Akinori Kitsuki, Jooyoung Yang and Jaeseok Lee.  2018.  Determinants of comparative advantage in GMO-intensive industries.  The World Economy 17 (3):  427-449.