Surplus distribution from the introduction of a biotechnology innovation

We examine the distribution of welfare from the introduction of Bt cotton i n the United States in 1996. The welfare framework explicitly recognizes th at research protected by intellectual property rights generates monopoly pr ofits, and makes it possible to partition these rents among consumers. farm ers, and the innovating input firms. We calculate a total increase in world surplus of $240.3 million for 1996. Of this total, the largest share (59%) went to U.S. farmers. The gene developer, Monsanto, received the next larg est share (21%), followed by U.S consumers (9%), the rest of the world (6%) , and the germplasm supplier, Delta and Pine Land Company (5%).