Abstract

ABSTRACT: The application of modern biotechnology to plant breeding is considered to be more efficient and quicker than conventional breeding techniques in the development of new and more resilient crop varieties. To test the impact that biotechnology is having on a industrial plant breeding activities, we relate firm level Plant Variety Protection Certificate (PVPC) applications to corresponding expenditure on research and development (R&D), agricultural biotechnology patents applications, field trials of genetically modified crops, firm structure, as well as industry specific characteristics. Regression results indicate agbiotech activities are directly related to PVP applications, hence the creation of new plant varieties. I. Introduction Prior to the twentieth century, most increases in agricultural production were due to increases in land devoted to crop production. As cities and industries took more land, the amount of open, farmable land became increasingly scarce. Farmers realized the importance of crop management and selection practices. For example, crops could be rotated to replace nutrients in the soil and selected for favorable traits given their environment, such as drought tolerance, resistance to pests, and higher yields.. However, as populations continue to expand, it has became increasingly important to push the threshold of crop production, i.e. to increase production yields. Attaining greater yields requires selecting, developing and growing the most productive and durable crop varieties. At first, science contributed tools like the principles of Mendelian inheritance for trait selection and cross breeding. Such “conventional” breeding methods have led to significant increases in yield potential of crops, but they are limited by intra-special mating and the time it takes hybrid varieties to grow and exhibit the desired trait. With evidence now emerging that yield gains of major cereals is slowing down, conventional breeding may not be able to deliver the genetic gains required to achieve higher yields and meet rising food demand (Pingali and Heisey, 1999) 2

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