The Determinants of Plant Variety Protection Applications in China

China passed its Plant Variety Protection Act (PVPA) in 1997 which allowed us to do some initial testing of this proposition. We used a unique dataset on the applications of the new Plant Variety Protection (PVP). morphological characteristics. and institutional sources of all the important varities of rice in three provinces of China to estimate the determinants of plant variety protection applications in China. The evidence suggests that both the government and private research programs are responding to economic and policy incentives and investing in plant variety protection as economists would expect profit maximizing firms to invest. The discussion of the evolution of the seed industry suggested that the combination of the new seed law in 2000 and the new plant variety protection regulation had changed the structure of the seed industry and provided an important incentive to invest in PVPs both by public research institutes and commercial firms. Finally, there is some preliminary evidence that private firms have smaller incentives to develop new varieties than to purchase the new varieties.