Agricultural research: Implications for productivity in New Zealand and Australia

Abstract

R&D is as an important source of productivity growth in New Zealand and Australian agriculture. In this paper trends in public investment in R&D and in productivity growth are reviewed. Investment in R&D has been flat in both countries until an upturn in recent years in New Zealand. Nevertheless research intensity in Australia appears to have been higher than that in New Zealand. Productivity growth is also likely to have been higher. We review recent analyses and tentatively conclude that returns to investments in domestic research in both countries are likely to have been in the order of 15 - 20%.Productivity, research and development, research evaluation,

Promoting food security by supporting agricultural R & D

“…However, the most recent multilateral study by Rao et al (2004) found that MFP growth rates in Australia and new Zealand over the period 1970-2001 were 2.0% and 0.8% per year, respectively. In addition, given that earlier analyses had suggested that MFP growth in new Zealand agriculture had not been as fast relative to the new Zealand market economy as had been the case in Australia, Mullen et al (2008) had concluded that it was likely that Australian agriculture may have become more competitive than new Zealand agriculture in the 90s. The recent estimates of MFP growth in nZ cast doubt on this conclusion.…”

“…Public investment in agriculture, fisheries and forestry (AFF) R & D grew steadily until the late 60s, at which time there was a surge in investment, until the mid 70s. From the mid 70s to the mid 90s there was little change in the annual level of public investment in real terms (Mullen et al (2008)…”

“…So public research intensity has been much higher in Australia than in new Zealand. Mullen et al (2008) suggested that while public research intensity in Australia has been about twice that in new Zealand, returns to agricultural research in the two countries seemed similar, and hence relative levels of research investment seemed appropriate. Australia's better performance may arise because it has a larger agricultural sector and larger share of broadacre cropping (where MFP growth was XLVI (2010) Proceedings of the New Zealand Grassland Association 72: XLIII-L most rapid, at least until 2000).…”

“…I have not tried to reconcile the MORST estimates of public investment in agricultural R&D with those used inMullen et al (2008) series which indicated a marked increase in R & D in the late 90s. 8 Again I was unable to reconcile the series on AFF GDP used inMullen et al (2008) with more recent data from Statistics NZ.…”

Does R&D spur productivity growth in Australia’s broadacre agriculture? A semi-parametric smooth coefficient approach

“…Similarly, Griliches (1964) estimates the Cobb-Douglas type agricultural production function while introducing a research and extension variable along with the conventional input variables. The investment in agricultural R&D is one of the leading factors that fuels productivity improvements in agriculture producing new knowledge and achieving technological breakthroughs (Alene 2010; Coe and Helpman 1995;Griliches 1988;Mullen, Scobie and Crean 2008;Wang et al 2013). It leads to a more effective use of existing resources and thereby increases productivity levels.…”