Living organisms produce chemicals for repelling pests and resisting i
nfections. Some of these chemicals have considerable commercial value.
The demonstration of commercial value might motivate increased conser
vation of tropical biodiversity. Successful commercialization requires
countries with genetic resources either to transfer these resources t
o foreign research organizations that can develop them or to acquire t
he capacity to develop them commercially. This paper discusses factors
in contracting for such transfers and investing in such capacity.