riesgos, oportunidades y beneficios de la biotecnología para los países de las américas greg...

Riesgos, oportunidades y Riesgos, oportunidades y beneficios de la biotecnologíabeneficios de la biotecnología

para los países de las Américaspara los países de las Américas

Greg TraxlerGreg TraxlerAuburn UniversityAuburn University

El Foro Técnico “El Foro Técnico “Riesgos, oportunidades y beneficios de la Riesgos, oportunidades y beneficios de la biotecnología para los países de las Américas” --biotecnología para los países de las Américas” --convocado por convocado por el Instituto Interamericano de Cooperación para la Agricultura el Instituto Interamericano de Cooperación para la Agricultura

(IICA) el martes 11 de diciembre, 2007(IICA) el martes 11 de diciembre, 2007

OutlineOutline

IntroductionThe context and experience of

Biotechnology in LACA model of biotechnology research and

accessThe Risks: Necessary Institutions and

Institutional Capacity in LACConclusions

Opportunities: What is Biotechnology? Opportunities: What is Biotechnology?

1.1. GMOsGMOs– Most visible (notorious) aspect Most visible (notorious) aspect – Widespread public interest; concern from someWidespread public interest; concern from some– Most studied aspect of biotechnology; most dataMost studied aspect of biotechnology; most data– Focus of this presentationFocus of this presentation

2.2. Molecular Techniques for Genetic Improvement Molecular Techniques for Genetic Improvement – Marker Assisted Selection, cellular biologyMarker Assisted Selection, cellular biology

3.3. Vaccines and Diagnostic Tools for Animal Vaccines and Diagnostic Tools for Animal agricultureagriculture

4.4. Advances in Basic Science Advances in Basic Science – New avenues of science; new scientific horizonNew avenues of science; new scientific horizon

LAC had 78% of the total DC GMO area in LAC had 78% of the total DC GMO area in 20062006

Near doubling in GMO area in 5 years,Near doubling in GMO area in 5 years,Use still concentrated in temperate/subtropical South Use still concentrated in temperate/subtropical South

ConeCone

Country GM area (000 ha)

2006 2001 Argentina 18,000 13,500 Brazil 11,500 2,000 Paraguay 2,000 500 Uruguay 400 50 Mexico 60 60 Colombia 30 0 Honduras 2 0 Total 31,992 16,110

Farmers

84%

Average number of chemical pesticide applications

0

2

4

6

8

10

12

1995 1996 1997 1998 1999 2000

Year

Nu

mb

er

of

pe

stic

ide

ap

plic

atio

ns

Total

BBW

Other

Benefit distribution, 1997-1998

Pesticide use and benefit distribution from Bt cotton in Mexico

Monsanto

16%

Source: Traxler, et al., 2004

GMO Impact studies have been completed in more than a dozen countriesFindings consistent in reporting:Large economic and environmental benefits, large benefits to farmers

Large benefits from GMOsLarge benefits from GMOsEconomic benefits broadly distributed among producers and Economic benefits broadly distributed among producers and

industry industry Large Environmental Benefits from reduced pesticide use Large Environmental Benefits from reduced pesticide use

and facilitation of reduced tillageand facilitation of reduced tillageBut … But …

High geographic and crop concentration in access to GMOs High geographic and crop concentration in access to GMOs Three cropsThree cropsSeven countries out 34 in LACSeven countries out 34 in LAC

What guidance does this paradox give for What guidance does this paradox give for accessing the potential of biotechnology accessing the potential of biotechnology science?science?

Broad Summary on GMO impacts: Broad Summary on GMO impacts: A ParadoxA Paradox

A model of biotechnology research and access

Basic ScienceBasic Science Applied & AdaptiveResearch

Applied & AdaptiveResearch

Technology Technology DeliveryDelivery


Seed DistributionSeed Distribution

Research cost and SpilloverSpillover potentialHigh Low

Genetic Improvement Research & Technology Roles

A three step model to analyze A three step model to analyze biotec Risks and Opportunitiesbiotec Risks and Opportunities

Spillover definitionSpillover definition: The use of technology that was developed elsewhere, thereby avoiding or reducing R&D investment costs.Example: RR soybean in Argentina developed in US



Local private sectorFarm input companies

Indust. Country R&D

Multinationals

Large NARSs




CGIAR Centers NARSs

Farmer-FarmerRegional networks, etc.


Institutions with primary responsibility for research in each area:Institutions with primary responsibility for research in each area:



Local private sector

Indust. Country R&D

Multinationals

Large NARSs




CGIAR Centers NARSs

Farmer-FarmerRegional mechanism, etc.


Institutions with primary responsibility for research in each area:Institutions with primary responsibility for research in each area:

1. Basic Science capacity2. Applied Science capacity3. Biosafety Regulatory institutions4. Investment Capital5. IPR institutions / incentives for technology sharing

Critical Institutional Capacities for biotechnology

The Risks: Necessary Institutions and Institutional Capacities in LAC

Basic Science CapacityBasic Science Capacity Applied (agricultural) science Applied (agricultural) science

capacitycapacity Biosafety regulatory institutionsBiosafety regulatory institutions Research Investment capitalResearch Investment capital

– Public sectorPublic sector– Private sectorPrivate sector

IPR institutions / financial incentives for IPR institutions / financial incentives for technology discovery technology discovery

14

5

6

2 2

1

0

1 1

0

2

4

6

8

10

12

14

16

0-50 50-100 100-200 201-500 501-1000 1000-2000

2001-3000

3001-4000

4001-5000

Number of FTE researchers in 1996

Nu

mb

er o

f C

ou

ntr

ies

(32

tota

l)Tremendous Diversity in Size of LAC Systems, 1996Tremendous Diversity in Size of LAC Systems, 1996

BrazilArgentinaMexico

Source: Beintema and Pardey

•Three countries account for 85% of LAC expendituresThree countries account for 85% of LAC expenditures•2/3 have less than 100 agricultural scientists2/3 have less than 100 agricultural scientists

Research Output: Basic Science Research Output: Basic Science and Applied Science and Applied Science publications in LACpublications in LAC

(Annual Average 1997-2006)(Annual Average 1997-2006)Biochemistry, Genetics and

Molecular Biology

Pct LAC total

Agricultural and

Biological Sciences

Pct LAC total

Brazil 2,094 45% 357 45%Argentina 891 19% 133 17%Mexico 713 15% 126 16%Chile 314 7% 45 6%Venezuela 139 3% 40 5%Total 4,151 89% 700 89%

Canada 6,682 634

US 55,418 4,200

Spain 4,545 507

Source: SCOPUS online database

Institutions that facilitate the sharing of Institutions that facilitate the sharing of research discoveries are critical given the research discoveries are critical given the country-country discrepancies in capacity.country-country discrepancies in capacity.

IP sharing is a key issue given the number of IP sharing is a key issue given the number of small countries with limited research capacity.small countries with limited research capacity.

Public sector lagging the private sector in Public sector lagging the private sector in progress in sharing IP. Intense amount of progress in sharing IP. Intense amount of licensing of IP within the private sector.-licensing of IP within the private sector.-

Implications of the great diversity Implications of the great diversity in size and capacity among LAC in size and capacity among LAC

countriescountries


Basic Science CapacityBasic Science Capacity Applied (agricultural) science capacityApplied (agricultural) science capacity Biosafety regulatory institutionsBiosafety regulatory institutions

– LegislationLegislation– Experience in overseeing biosafety field trialsExperience in overseeing biosafety field trials

Research Investment capitalResearch Investment capital– Public sectorPublic sector– Private sectorPrivate sector

IPR institutions / financial incentives for IPR institutions / financial incentives for technology discovery technology discovery

Specific Biosafety Legislation

Related Legislation

No Information/No Access to Legislation

Argentina Belize* Antigua and BarbudaBrazil Bolivia* BahamasMexico Chile Barbados

Costa Rica* Dominica

Ecuador Guyana

El Salvador* Haiti

Guatemala St. Lucia

Grenada St. Christopher and Nevis

Honduras St. Vincent and the Grenadines

Jamaica* Surinam

Nicaragua* Trinidad & Tobago

Panama

Paraguay

Peru**

Dominican Republic

Uruguay

Venezuela

Status of Biosafety legislation in LAC CountriesStatus of Biosafety legislation in LAC Countries

Source: Tewolde

Experience in overseeing biosafety field trials:Experience in overseeing biosafety field trials:Concentrated in a few countriesConcentrated in a few countries

GMO Field Trials in Five LAC countries, by year (2000-2006)

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006

Num

ber

of fi

eld

tria

ls

Costa Rica

Colombia

Brasil

México

Argentina

7 LAC countries have approved at least one GMO event for commercial

use

Country Number of

approved events 2006 2001 Argentina 10 8 Brazil 2 1 Paraguay 1 0 Uruguay 5 1 Mexico 4 4 Colombia 3 0 Honduras 1 0 Total 26 14

Same data as previous slide: GMO commercial Same data as previous slide: GMO commercial approvals by yearapprovals by year

Number of Biosafety Approvals Granted in LAC, 1996-2006

0

1

2

3

4

5

6

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

Nu

mb

er

of

Ap

pro

va

ls

No increase in the pace of GMO approvals over timeNo increase in the pace of GMO approvals over time

Number of GMO field trials in four countries, by sector (2000-2007)

477

73

10

27

2

53

0

8

3

24

208

4

0

14

0

17Multinationals

National Private

Universities

Public NARS

Argentina México Colombia Costa Rica

Private sector has conducted 89% of all field trialsPrivate sector has conducted 89% of all field trials



– LegislationLegislation– Experience in overseeing biosafety field Experience in overseeing biosafety field

trialstrials Research Investment capitalResearch Investment capital


IPR institutions / financial incentives IPR institutions / financial incentives for technology discovery for technology discovery

Global R&D Expenditures on Crop biotechnology, Global R&D Expenditures on Crop biotechnology, 20012001-Concentrated in Industrial Countries-Concentrated in Industrial Countries-Dominated by the private sector-Dominated by the private sector

$ millions Private (70%) 3,100 Public (30%) 1,120 Industrial Country Tot. (96% ) 4,220 China 115 India 25 Brazil 15 Others 25 Developing Country Tot. (4% ) 180 World Total 4,400 Source: James, 2003

Source:NASS/USDA and author’s calculations

GMO royalties generated (US$ million)GMO royalties generated (US$ million)

0

50

100

150

200

250

300

350

400

450

500

1996 1997 1998 1999 2000 2001 2002 2003

US Cottton US Soy US Maize Canada Argentina Other LDC

$ 942

$ 745

US

tota

l=

$1,0

43

Argentina

Other DCs

Source: Pardey (2006)

0

2

4

6

8

10

12

Public sector spending

Developing

Bil

lio

ns

2000

in

t.$

Industrialized

2000 Annual Expenditures on Agricultural 2000 Annual Expenditures on Agricultural Research Research Total annual Total annual PPublic Expenditures higher in ublic Expenditures higher in DevelopingDeveloping Countries than developed countries Countries than developed countries

DC spending skewed by large investments by

“Super Nars” (Brazil, India, China)

BUT, Near Absence of Private Funding in BUT, Near Absence of Private Funding in Developing countries means that total ag Developing countries means that total ag research is nearly twice as high in industrial research is nearly twice as high in industrial countriescountries


0

2

4

6

8

10

12

Industrialized

Private sector spending

Developing

Public sector spending

Developing

Bil

lio

ns

2000

in

t.$

Industrialized

Total research expenditures Total research expenditures far higher in Industrialized far higher in Industrialized countries because of private countries because of private sector investments. sector investments. Private investments are a Private investments are a compliment to public compliment to public investment, not a substituteinvestment, not a substitute


02

4

6

8

10

12

Developing

Bil

lio

ns

2000

in

t.$

Industrialized

Total ag research spending Public and Total ag research spending Public and PrivatePrivate

Share of spending

Region/country % Public % Private

LACLAC 95%95% 5%5%

Asia–Pacific 92% 8%

Sub-Saharan Africa 98% 2%

Middle East and N. Africa 97% 4%

Developing-country total 94% 6%

Developed country total 46% 54%

Agricultural Expenditures Agricultural Expenditures by Public or Private by Public or Private

SectorSector


Capital for Research InvestmentCapital for Research Investment– Public sectorPublic sector– Private sectorPrivate sector

Basic Science CapacityBasic Science Capacity Applied (agricultural) science Applied (agricultural) science

capacitycapacity Biosafety regulatoryBiosafety regulatory Ability to generate revenues Ability to generate revenues

from seed usefrom seed use

Genetic Resources

PlantBreeding

Adapted Transgeni

c Variety

Farmers

Research leading to a

transformation event

Seed CompaniesSeed Companies

““Biotech” CompaniesBiotech” Companies

Regulatory/BiosafetyApproval

IP negotiation

Seed Seed MarketsMarkets(Royalty (Royalty

collection)collection)

$$$$$$

$$$$$$

Mobilizing resources to Finance Biotechnology and Seed research: The Traditional Way The Traditional Way

Field Testing

Genetic Resources

PlantBreeding

Adapted Transgeni

c Variety

Farmers

Research leading to a

transformation event

Seed CompaniesSeed Companies

““Biotech” CompaniesBiotech” Companies

Regulatory/BiosafetyApproval

IP negotiation

Seed Markets(Royalty

collection)

$$$$$$

$$$$$$

Field Testing

X

X

X

Difficulty in collecting royalties in developing Difficulty in collecting royalties in developing countries blocks private sector investment countries blocks private sector investment

Genetic Genetic ResourceResource

ss

PlantPlantBreedingBreeding

Adapted Adapted TransgeniTransgeni

cc VarietyVariety

FarmersFarmers

TransformationTransformation eventevent

2. Plant breeding Research2. Plant breeding Research

1. Biotechnology Research1. Biotechnology Research

Regulatory/BiosafetyRegulatory/BiosafetyApprovalApproval

IP negotiationIP negotiation

Royalty collectio

n

$$$$$$

$$$$$$

X

Institutional Innovation: End Point RoyaltyInstitutional Innovation: End Point Royalty Scheme - Scheme - IP Royalties Collected When Grain is IP Royalties Collected When Grain is

SoldSold

GrainGrainDealersDealers

End pointEnd point RoyaltiesRoyalties

End pointEnd point RoyaltiesRoyalties

Seed Sale versus Endpoint Seed Sale versus Endpoint Royalty collection scheme Royalty collection scheme

Seed SalesSeed Sales ““Royalty” included as Royalty” included as

part of seed pricepart of seed price Seed companies pay Seed companies pay

GM gene license fee to GM gene license fee to MonsantoMonsanto

““Bolsa BlancaBolsa Blanca” seed ” seed sales destroy private sales destroy private sector investment sector investment incentiveincentive

Royalty Collection at Grain Royalty Collection at Grain Sale (endpoint) Sale (endpoint)

Royalty collected at elevator Royalty collected at elevator when grain soldwhen grain sold

Royalty based on % of grain Royalty based on % of grain valuevalue

Administrative fee paid to Administrative fee paid to elevators for collecting feeelevators for collecting fee

Examples: Australia, France, Examples: Australia, France, UK, South Cone GMOsUK, South Cone GMOs

Royalties in ParaguayRoyalties in Paraguay

Adoption 50% (1.8 million ha)Adoption 50% (1.8 million ha) Collection begun in 2005Collection begun in 2005

– $3 - $6 ton, increasing over time$3 - $6 ton, increasing over time– Distribution of RoyaltiesDistribution of Royalties

53% Monsanto53% Monsanto 17% Seed Companies17% Seed Companies 8% Grain handlers (50 firms)8% Grain handlers (50 firms) 10% Public Research Foundation10% Public Research Foundation 12% Administrative expenses12% Administrative expenses

Source: http://www.inbio-paraguay.org/html/acuerdo_marco.htmSource: http://www.inbio-paraguay.org/html/acuerdo_marco.htm

Summary: Necessary Institutions and Institutional Capacities in LAC


– LegislationLegislation– Experience in overseeing biosafety field Experience in overseeing biosafety field

trialstrials Research Investment capitalResearch Investment capital


IPR institutions / financial incentives IPR institutions / financial incentives for technology discovery for technology discovery

Perspective: Opportunities to Perspective: Opportunities to Support BiotechnologySupport Biotechnology

Support for new mechanisms for mobilizing private sector R&D Support for new mechanisms for mobilizing private sector R&D investment investment Endpoint royalties is one experimentEndpoint royalties is one experiment

Improved institutions/mechanisms for Public-Public sharing of IPImproved institutions/mechanisms for Public-Public sharing of IPPublic sector has more difficulty sharing IP than private sectotPublic sector has more difficulty sharing IP than private sectot

Continued support for biosafety capacityContinued support for biosafety capacityPublic sector agricultural research must not be reduced, even if Public sector agricultural research must not be reduced, even if

private sector investment increases – Distinct roles for each private sector investment increases – Distinct roles for each class of institutionclass of institution

Large opportunities for payoffs from biotechnology research in Large opportunities for payoffs from biotechnology research in areas other than GMOs, but data on impacts to date lackingareas other than GMOs, but data on impacts to date lacking– Molecular Techniques for Genetic Improvement Molecular Techniques for Genetic Improvement – Vaccines and Diagnostic Tools for Animal agricultureVaccines and Diagnostic Tools for Animal agriculture– Advances in Basic Science Advances in Basic Science

GraciasGracias

riesgos, oportunidades y beneficios de la biotecnología para los países de las américas greg...

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