Property rights issues involving plant genetic resources: implications of ownership for economic efficiency

The economic theory of property rights is applied to the issue of the conservation of plant genetic diversity, an issue often discussed in terms of benefit sharing, in order to demonstrate that the assignment of property rights is important for reasons of efficiency as well as for equity. Given the existence of transaction costs within an industry, the location of a property rights assignment is a crucial factor determining the incentives for efficient levels of investment at various levels of that industry. In the context of plant genetic resources, this means that property rights that are located at the retail end of the pharmaceutical and plant breeding industries may not have sufficient effect to generate the incentives to supply adequate amounts of plant genetic resources to the research and development sectors at the base of these industries. © 2000 Elsevier Science B.V. All rights reserved.