Giventheexistenceoftransactioncosts,thelocationofpropertyrightsisanimportantfactorindeterminingtheincentivesforefficientlevelsofinvestmentatvariouslevelsoftheindustry.Thispaperappliessomeoftheeconomictheoriesofpropertyrightsandindustrialstructuretotheissuesconcerningtheconservationofbiopersity.AlthoughtheexpansionofIntellectualPropertyRights(IPR)systemsintotheareaofgeneticresourceshasincreasedprivateinvestmentinR&Dprocessoftheagriculture,itdoesnotgenerateenoughincentivesforinsituconservationofbiopersity.Tosolvethiseconomicinefficiency,farmers’rightsandotherdesignofincentivesandinstitutionalarrangementshouldbereconsidered.
