Agricultural Research by the Private Sector

The private sector has assumed a larger role in developing improved technology for food and agriculture, with private agricultural R&D spending growing faster than public agricultural R&D spending over the past several decades. Major drivers have been new commercial opportunities afforded by scientific advances and liberalization of agricultural input markets. Along with rising private R&D investment, agricultural input industries have undergone significant structural changes. These developments have been pronounced in both high-income and developing countries. The rising importance of private R&D, however, does not imply a diminished role of the public sector, as most empirical evidence points to complementarities between public and private agricultural R&D.