SPILLOVERS AND THE RETURNS TO AGRICULTURAL RESEARCH FOR POTATOES

Returns to investments in potato research were estimated for the United States and six subregions. The study combines time-series and cross-sectional data to estimate the supply response for potatoes. Two research variables, research within the state and within the region, were included as exogenous variables to identify spillovers of research results. The rate of return to investments in potato research in the U.S. is estimated at 79%. Of this, 31% accrues to states conducting the research and 69% is accounted for by the spillover effects.