Introduction and overview

There is an extensive literature on gains from agricultural research. Norton and Davis (1981) and Alston (1993) provide excellent surveys. Relatively few studies formally examine impacts of research in an international context, however. Even fewer have examined the effects of technological spillovers across regions. New technologies may reduce production costs, both in the country where they are developed and in other regions that can adopt these technologies or adapt them to local production conditions.

International spillovers are an important aspect of agricultural research. International research and assistance agencies such as the UN Food and Agriculture Organization (FAO), the World Bank, and the Consultative Group for International Agricultural Research (CGIAR) have missions that include the international dissemination of agricultural technologies. Also, the rise of multinational agricultural input suppliers means that adoption of agricultural innovations will not be confined to particular countries.

Spillovers also have implications for the setting of national research priorities. Because taxpayers incur the costs of domestic public research programs, there is interest in examining the distribution of research gains between the home country and the rest of the world. Research, such as plant breeding for particular production environments may be less transferable to other countries; chemical, mechanical, or processing innovations may be more transferable. National governments may desire to allocate resources to research projects with lower spillover potential to trade competitors; input suppliers or international research agencies may favor wider international adoption of technologies.