Consolidations and spin-offs in the agricultural biotechnology industry and the growing links of multinational corporations with the food and feed industry have been the subject of considerable discussion among academics, policy makers, consumers, and farmers. Most of the research by academic and overnment institutions has focused on the reasons for consolidation. Little theoretical or empirical research has examined the impact of this consolidation. We adapt an endogenous growth model of industry structure and R&D to agricultural biotechnology and empirically estimate the model. These empirical estimates, the main focus of the paper, indicate that industry consolidation influences the amount and direction of research, which then feeds back to influence industry structure.