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Riesgos, oportunidades y beneficios de la biotecnología para los países de las Américas Greg Traxler Auburn University El Foro Técnico “Riesgos, oportunidades.

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Presentation on theme: "Riesgos, oportunidades y beneficios de la biotecnología para los países de las Américas Greg Traxler Auburn University El Foro Técnico “Riesgos, oportunidades."— Presentation transcript:

1 Riesgos, oportunidades y beneficios de la biotecnología para los países de las Américas Greg Traxler Auburn University El Foro Técnico “Riesgos, oportunidades y beneficios de la biotecnología para los países de las Américas” --convocado por el Instituto Interamericano de Cooperación para la Agricultura (IICA) el martes 11 de diciembre, 2007

2 Outline Introduction The context and experience of Biotechnology in LAC A model of biotechnology research and access The Risks: Necessary Institutions and Institutional Capacity in LAC Conclusions

3 Opportunities: What is Biotechnology? 1. GMOs –Most visible (notorious) aspect –Widespread public interest; concern from some –Most studied aspect of biotechnology; most data –Focus of this presentation 2. Molecular Techniques for Genetic Improvement –Marker Assisted Selection, cellular biology 3. Vaccines and Diagnostic Tools for Animal agriculture 4. Advances in Basic Science –New avenues of science; new scientific horizon

4 LAC had 78% of the total DC GMO area in 2006 Near doubling in GMO area in 5 years, Use still concentrated in temperate/subtropical South Cone

5 Farmers 84% Average number of chemical pesticide applications Year Number of pesticide applications Total BBW Other Benefit distribution, Pesticide use and benefit distribution from Bt cotton in Mexico Monsanto 16% Source: Traxler, et al., 2004 GMO Impact studies have been completed in more than a dozen countries Findings consistent in reporting: Large economic and environmental benefits, large benefits to farmers

6 Large benefits from GMOs Economic benefits broadly distributed among producers and industry Large Environmental Benefits from reduced pesticide use and facilitation of reduced tillage But … High geographic and crop concentration in access to GMOs Three crops Seven countries out 34 in LAC What guidance does this paradox give for accessing the potential of biotechnology science? Broad Summary on GMO impacts: A Paradox

7 A model of biotechnology research and access

8 Basic Science Applied & Adaptive Research Applied & Adaptive Research Technology Delivery Seed Distribution Spillover Research cost and Spillover potential High Low Genetic Improvement Research & Technology Roles A three step model to analyze biotec Risks and Opportunities A three step model to analyze biotec Risks and Opportunities Spillover definition Spillover definition: The use of technology that was developed elsewhere, thereby avoiding or reducing R&D investment costs. Example: RR soybean in Argentina developed in US

9 Basic Science Applied & Adaptive Research Applied & Adaptive Research Local private sector Farm input companies Indust. Country R&D Multinationals Large NARSs Technology Delivery Seed Distribution CGIAR Centers NARSs Farmer-Farmer Regional networks, etc. Genetic Improvement Research & Technology Roles Institutions with primary responsibility for research in each area:

10 Basic Science Applied & Adaptive Research Applied & Adaptive Research Local private sector Indust. Country R&D Multinationals Large NARSs Technology Delivery Seed Distribution CGIAR Centers NARSs Farmer-Farmer Regional mechanism, etc. Genetic Improvement Research & Technology Roles Institutions with primary responsibility for research in each area: 1.Basic Science capacity 2.Applied Science capacity 3.Biosafety Regulatory institutions 4.Investment Capital 5.IPR institutions / incentives for technology sharing Critical Institutional Capacities for biotechnology

11 The Risks: Necessary Institutions and Institutional Capacities in LAC Basic Science Capacity Basic Science Capacity Applied (agricultural) science capacity Applied (agricultural) science capacity Biosafety regulatory institutions Biosafety regulatory institutions Research Investment capital Research Investment capital –Public sector –Private sector IPR institutions / financial incentives for technology discovery IPR institutions / financial incentives for technology discovery

12 Tremendous Diversity in Size of LAC Systems, 1996 BrazilArgentinaMexico Source: Beintema and Pardey Three countries account for 85% of LAC expendituresThree countries account for 85% of LAC expenditures 2/3 have less than 100 agricultural scientists2/3 have less than 100 agricultural scientists

13 Research Output: Basic Science and Applied Science publications in LAC (Annual Average ) Source: SCOPUS online database

14 Institutions that facilitate the sharing of research discoveries are critical given the country-country discrepancies in capacity. Institutions that facilitate the sharing of research discoveries are critical given the country-country discrepancies in capacity. IP sharing is a key issue given the number of small countries with limited research capacity. IP sharing is a key issue given the number of small countries with limited research capacity. Public sector lagging the private sector in progress in sharing IP. Intense amount of licensing of IP within the private sector.- Public sector lagging the private sector in progress in sharing IP. Intense amount of licensing of IP within the private sector.- Implications of the great diversity in size and capacity among LAC countries

15 The Risks: Necessary Institutions and Institutional Capacities in LAC Basic Science Capacity Basic Science Capacity Applied (agricultural) science capacity Applied (agricultural) science capacity Biosafety regulatory institutions Biosafety regulatory institutions –Legislation –Experience in overseeing biosafety field trials Research Investment capital Research Investment capital –Public sector –Private sector IPR institutions / financial incentives for technology discovery IPR institutions / financial incentives for technology discovery

16 Specific Biosafety Legislation Related Legislation No Information/ No Access to Legislation ArgentinaBelize*Antigua and Barbuda BrazilBolivia*Bahamas MexicoChileBarbados Costa Rica*Dominica EcuadorGuyana El Salvador*Haiti GuatemalaSt. Lucia GrenadaSt. Christopher and Nevis HondurasSt. Vincent and the Grenadines Jamaica*Surinam Nicaragua*Trinidad & Tobago Panama Paraguay Peru** Dominican Republic Uruguay Venezuela Status of Biosafety legislation in LAC Countries Source: Tewolde

17 Experience in overseeing biosafety field trials: Concentrated in a few countries

18 7 LAC countries have approved at least one GMO event for commercial use

19 Same data as previous slide: GMO commercial approvals by year No increase in the pace of GMO approvals over time

20 Private sector has conducted 89% of all field trials

21 The Risks: Necessary Institutions and Institutional Capacities in LAC Basic Science Capacity Basic Science Capacity Applied (agricultural) science capacity Applied (agricultural) science capacity Biosafety regulatory institutions Biosafety regulatory institutions –Legislation –Experience in overseeing biosafety field trials Research Investment capital Research Investment capital –Public sector –Private sector IPR institutions / financial incentives for technology discovery IPR institutions / financial incentives for technology discovery

22 Global R&D Expenditures on Crop biotechnology, Concentrated in Industrial Countries -Dominated by the private sector Source: James, 2003

23 Source:NASS/USDA and author’s calculations GMO royalties generated (US$ million) $ 942 $ 745 US total= $1,043 Argentina Other DCs

24 Source: Pardey (2006) Public sector spending Developing Billions 2000 int.$ Industrialized 2000 Annual Expenditures on Agricultural Research Total annual Public Expenditures higher in Developing Countries than developed countries DC spending skewed by large investments by “Super Nars” (Brazil, India, China)

25 BUT, Near Absence of Private Funding in Developing countries means that total ag research is nearly twice as high in industrial countries Source: Pardey (2006) Industrialized Private sector spending Developing Public sector spending Developing Billions 2000 int.$ Industrialized

26 Total research expenditures far higher in Industrialized countries because of private sector investments. Private investments are a compliment to public investment, not a substitute Source: Pardey (2006) Developing Billions 2000 int.$ Industrialized Total ag research spending Public and Private

27 Share of spending Region/country% Public% Private LAC LAC95%5% Asia–Pacific92%8% Sub-Saharan Africa98%2% Middle East and N. Africa97%4% Developing-country total94%6% Developed country total46%54% Agricultural Expenditures by Public or Private Sector

28 The Risks: Necessary Institutions and Institutional Capacities in LAC Capital for Research Investment Capital for Research Investment –Public sector –Private sector Basic Science Capacity Basic Science Capacity Applied (agricultural) science capacity Applied (agricultural) science capacity Biosafety regulatory Biosafety regulatory Ability to generate revenues from seed use Ability to generate revenues from seed use

29 Genetic Resources Plant Breeding Adapted Transgenic Variety Farmers Research leading to a transformation event Seed Companies “Biotech” Companies Regulatory/Biosafety Approval IP negotiation Seed Markets (Royaltycollection) $$$ $$$ The Traditional Way Mobilizing resources to Finance Biotechnology and Seed research: The Traditional Way Field Testing

30 Genetic Resources Plant Breeding Adapted Transgenic Variety Farmers Research leading to a transformation event Seed Companies “Biotech” Companies Regulatory/Biosafety Approval IP negotiation Seed Markets (Royalty collection) $$$ $$$ Field Testing X X X Difficulty in collecting royalties in developing countries blocks private sector investment

31 GeneticResourcesPlantBreeding Adapted Transgenic Variety Variety Farmers Transformation event event 2. Plant breeding Research 1. Biotechnology Research Regulatory/BiosafetyApproval IP negotiation Royalty collection $$$ $$$ X Institutional Innovation: End Point Royalty Scheme - IP Royalties Collected When Grain is Sold GrainDealers End point Royalties Royalties End point Royalties Royalties

32 Seed Sale versus Endpoint Royalty collection scheme Seed Sales “Royalty” included as part of seed price “Royalty” included as part of seed price Seed companies pay GM gene license fee to Monsanto Seed companies pay GM gene license fee to Monsanto “Bolsa Blanca” seed sales destroy private sector investment incentive “Bolsa Blanca” seed sales destroy private sector investment incentive Royalty Collection at Grain Sale (endpoint) Royalty collected at elevator when grain sold Royalty collected at elevator when grain sold Royalty based on % of grain value Royalty based on % of grain value Administrative fee paid to elevators for collecting fee Administrative fee paid to elevators for collecting fee Examples: Australia, France, UK, South Cone GMOs Examples: Australia, France, UK, South Cone GMOs

33 Royalties in Paraguay Adoption 50% (1.8 million ha) Adoption 50% (1.8 million ha) Collection begun in 2005 Collection begun in 2005 –$3 - $6 ton, increasing over time –Distribution of Royalties 53% Monsanto 53% Monsanto 17% Seed Companies 17% Seed Companies 8% Grain handlers (50 firms) 8% Grain handlers (50 firms) 10% Public Research Foundation 10% Public Research Foundation 12% Administrative expenses 12% Administrative expenses Source: Source:

34 Summary: Necessary Institutions and Institutional Capacities in LAC Basic Science Capacity Basic Science Capacity Applied (agricultural) science capacity Applied (agricultural) science capacity Biosafety regulatory institutions Biosafety regulatory institutions –Legislation –Experience in overseeing biosafety field trials Research Investment capital Research Investment capital –Public sector –Private sector IPR institutions / financial incentives for technology discovery IPR institutions / financial incentives for technology discovery

35 Perspective: Opportunities to Support Biotechnology Support for new mechanisms for mobilizing private sector R&D investment Endpoint royalties is one experiment Improved institutions/mechanisms for Public-Public sharing of IP Public sector has more difficulty sharing IP than private sectot Continued support for biosafety capacity Public sector agricultural research must not be reduced, even if private sector investment increases – Distinct roles for each class of institution Large opportunities for payoffs from biotechnology research in areas other than GMOs, but data on impacts to date lacking –Molecular Techniques for Genetic Improvement –Vaccines and Diagnostic Tools for Animal agriculture –Advances in Basic Science

36 Gracias


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