Social rate of return to plant breeding research in Germany

Abstract

This article focuses on the social rate of return to plant breeding investment in Germany between 1980-2000. Starting point of the analysis is the development of total factor productivity which is decomposed into the effects of factor input and research investment. Information on investment in plant breeding have been obtained via questionnaires sent to both private plant breeding companies and public research organizations. The empirical results suggest significant underinvestment in German plant breeding research, as the calculated social rate of return is in the range of 16 to 28%.