Co-Authors:
Shalhevet, S., Department of Economics, Agricultural Research Organization, P.O. Box 6, Bet Dagan 50250, Israel
Haruvy, N., Institute of Soil, Water and Environmental Sciences, Agricultural Research Organization, P.O. Box 6, Bet Dagan 50250, Israel
Spharim, I., Department of Economics, Agricultural Research Organization, P.O. Box 6, Bet Dagan 50250, Israel
Abstract:
Agricultural biotechnology is concentrated in four major countries. This paper suggests strategies for developing it in small countries, based on analysis of the world trends and the characteristics of small countries. Israel is presented as a specific case study. The main relevant trends are domination by big companies, consumer concerns on genetically modified foods, and focusing on consumer benefits and specific market niches. Small countries' disadvantages include companies that are too small to benefit fully from research, difficulty in raising funds, lack of infrastructures and experienced management personnel, and public sector research organizations that are unsuitable for commercializing research. The recommended strategies include: developing a large number of low-volume products and small market niches, forming partnerships with intermediaries (such as food companies), specializing in intermediate products (such as the seed or the gene patent), and conducting market research and cost-benefit analysis in advance. Additional strategies include developing benefits that are unique to genetically modified foods and focusing on benefits specifically for consumers who accept genetically modified foods, rather than on benefits for the average consumer. A national representative organization could buy and rent out expensive equipment, finance specific projects in return for the commercial rights, and perform collective marketing research and marketing. Israel has the advantages of a successful agricultural sector and complementary scientific research, and should focus on those fruits, vegetables, and flowers for which it already has the experience and infrastructure. © 2001 Elsevier Science Inc. All rights reserved.
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