PRIVATE R&D INVESTMENTS IN AGRICULTURE: THE ROLE OF INCENTIVES AND INSTITUTIONS
This paper presents econometric evidence of the effects of economic incentives and institutions on national aggregate private agricultural R&D investments. A model is proposed and fitted to annual data for seven European Union countries, 1984-1995. We find strong impacts of both incentives and institutions on private agricultural R&D investment, and including institutional factors strengthens the story and in some cases changes greatly the results. In particular, we reject the hypothesis that quality of property rights does not matter.