Foreign Direct Investment and Spillovers in Seed Sector Development
Authors: S. Derwisch, B. Kolpainsky, V. Henson-Apollonio
Year: 2009
Pages: 19
Language: English
The role of foreign direct investment and intellectual property rights in economic
development is discussed widely in the literature. However, an integrating framework is
missing to assess the role of FDI and IPR for agricultural development. This paper
establishes a framework to assess the role of FDI and IPR for seed sector development in
developing countries. The impact assessment is carried out with a System Dynamics model
that shows local capacity development to develop new seed varieties in the scenario of a
multinational company penetrating the market and spillovers occurring. Simulation runs
reveal the impact of IPR on the quantity technology transferred by multinational
companies and on spillovers. The development path of the local industry depends crucially
on the capacity of the local seed sector when the multinational company enters. A pattern
for seed sector development is derived.
Tags: Derwisch, foreign direct investment, Henson-Apollonio, IPRs in economic development, Kolpainsky, publication, SDM, seed sector, system dynamics modelling
