The private sector in agricultural research systems: Will it fill the gap?

This article examines whether the private sector can fill the gap of declining public research in developing countries. Economic theory suggests private for-profit research will focus on areas where returns to research are appropriable and reasonable profits are generated. Actual private for-profit research activities concentrate on countries and industries with large markets, appropriable returns, strong science infrastructure, and favorable government policies. Governments and donors can promote private research by easing constraints to private entry and operations. But, if governments stop funding research on public goods and technologies with limited market potential, the private sector is unlikely to fill the gap completely. (C) 1998 Elsevier Science Ltd. All rights reserved.