Market power and the development of new cultivars of transgenic and conventional soybean: analysis of the Brazilian experience
Abstract
In recent years , investments in research , development and innovation revolutionized soybean production in Brazil . In biotech , we highlight the development of new cultivars with characteristics adapted to different environmental conditions and , in many cases , transgenic resistant to the herbicide glyphosate . However, if provided to a limited number of companies , which owns the industrial property right on these innovations , market dominance . In this context , the aim of this study was to analyze the existing monopoly power in the development of soybean , transgenic and conventional segment in Brazil . To do so , we calculated the market share and the Herfindahl - Hirschman Index of innovations in biotechnology from property rights to cultivate , consolidated in the database of the National Register of Cultivars . The analysis showed that the concentration is low , with a trend of increased competition , for the segment of conventional seeds . In contrast , the transgenic seeds segment , the concentration levels are high and the tendency is to stay that way , because the entry of new firms in this market requires high technological development and availability of capital . At this juncture , sheltered by barriers to entry , concentration allows dominant firms to increase the price of the seed or the collection of royalties, unilaterally and in proportion as they see fit , which may , in the medium and long term , result in financial loss for soybean farmers .Downloads
Authors retain copyright and grant the Journal the right to the first publication. Authors are encouraged to and may self-archive a created version of their article in their institutional repository, or as a book chapter, as long as acknowledgement is given to the original source of publication. As the Journal provides open access to its publications, articles may not be used for commercial purposes. The contents published are the sole and exclusive responsibility of their authors; however, the publishers can make textual adjustments, adaptation to publishing standards and adjustments of spelling and grammar, to maintain the standard patterns of the language and the journal. Failure to comply with this commitment will submit the offenders to sanctions and penalties under the Brazilian legislation (Law of Copyright Protection; nº 9,610; 19 February 1998).