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Abstract
This paper describes the relationship between public- and private-sector research and seed production in Mexico and Guatemala. The focus is on public agricultural research institutes, and local and multinational seed companies with special emphasis on institutional rules affecting the public-private interaction. Market size and public research and regulatory policies were identified as key elements in determining the involvement of private seed companies in research. These companies are substantially increasing their research effort in Mexico and Guatemala. In Mexico, multinationals are very active, while local companies are not; the opposite is true in Guatemala. Complementarity between public and private research and seed production is stronger in Guatemala than in Mexico. Preliminary evidence presented in this study shows that commercial farmers in Mexico and Guatemala during 1987 captured most of the benefits generated from research on improved maize varieties and hybrids, provided that these materials outyield traditional ones by at least 20%.