INTERNATIONAL RESEARCH AND DEVELOPMENT JOINT VENTURES IN AGRICULTURAL BIOTECHNOLOGY: THE CASE OF U.S. FIRMS (DEVELOPING COUNTRIES, GENETIC ENGINEERING, TECHNOLOGY TRANSFER, UNITED STATES)

This research was undertaken to evaluate the appropriateness of joint ventures between organizations in developed and developing countries as a manner of conducting research in agricultural biotechnology. Four conditions supporting such ventures were studied in detail: (1) the long-term nature and site specificity of plant agricultural research; (2) the major role played by developing countries in global agricultural production and consumption; (3) the concentration of scientific expertise in developed countries, particularly Japan, Western Europe, and the United States; and (4) investment regulations in many developing countries requiring that local nationals be involved in foreign investments, often as venture partners. The essential elements of the organization were distilled from definitions of joint venture used by various regulatory and legislative sources as well as other researchers. The advantages and disadvantages of joint ventures, and ingredients for their success, were then summarized. A mail survey was administered to U.S. firms involved in biotechnology R&D, the results of which provided data on: (1) the pattern of international R&D in biotechnology over the past ten years; (2) factors which influence the firms' decision to implement an R&D joint venture hosted in a developing country; (3) preferred developing countries in which to locate a venture; and (4) the firm's intentions regarding international R&D arrangements in the near future.;The survey indicated that joint ventures between developed country firms and organizations in the developing world are viewed by a limited number of U.S. firms as an appropriate manner of conducting R&D in biotechnology, including plant agricultural applications of biotechnology. From the perspective of U.S. firms, partner organizations are likely to be located in countries which (1) are politically stable; (2) have strong patent and trade secret protection. (3) have markets for biotechnology based products; and (4) have the ability to absorb biotechnology. International R&D arrangements with organizations in other developed countries are expected to predominate in the near future. Changes in the policies of national governments and in firm attitudes were discussed that would encourage implementation of joint ventures hosted by developing countries in the future.