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Abstract
Private R&D is a major source of innovation and productivity growth in agriculture worldwide.
This paper examines trends and determinants of agricultural R&D in China. Results show that
while the public sector monopolized agricultural research until recently, private agricultural R&D
has grown rapidly since 2000, driven largely by agribusiness privatization. Public-sector R&D
investments in basic research also encouraged private R&D research, but public investments in
technology development crowded out private R&D investment. China’s private R&D investment
would grow more rapidly if the government shifted public resources from technology development
to basic research.