Emerging competition policy issues in agricultural biotechnology

The increased importance of privately sponsored biotechnology research has led to mergers, strategic alliances, vertical coordination technology licen sing, and other changes among firms within the agricultural sector: The ind ustry is in the midst of sweeping changes, and research and development has become a central driver. Competition concerns are emerging that had not ex isted in the past and will likely bring increased antitrust scrutiny. This article outlines the economic principles that underlie efficient competitio n especially those in high-technology industries. It then uses these princi ples to analyze the new strategic practices that may trigger increased inte rvention under competition policy. In particular the article considers the effects of mergers, research joint ventures, technology licensing, and prod uct tying and bundling.