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Abstract
After more than a decade of GM crops,
literature reports farmers and consumers can gain
significantly from the technology, despite the intellectual
property rights assigned to the innovator. In this paper
we assess the effect of heterogeneity on this distribution
of benefits. A two dimensional framework is created to
assess the ex ante benefits of an innovation. Given this
setting and the scarce data often available, a parametric
modelling approach is taken. The two dimensions of
heterogeneity, spatial and temporal, are explicitly
modelled as they have a different importance for
different technologies. Using this framework we can
simulate different corporate pricing strategies and
evaluate the benefits generated under changing
heterogeneity. The framework is tested on the
introduction of HT sugar beet in the EU-27.