THE PRIVATE-SECTOR IN AGRICULTURAL-RESEARCH SYSTEMS - WILL IT FILL THE GAP

This article examines whether the private sector can fill the gap of d eclining public research in developing countries. Economic theory sugg ests 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 i ndustries with large markets, appropriable returns, strong science inf rastructure, and favorable government policies. Governments and donors can promote private research by easing constraints to private entry a nd operations. But, if governments stop funding research on public goo ds and technologies with limited market potential, the private sector is unlikely to fill the gap completely. (C) 1998 Elsevier Science Ltd. All rights reserved.