Needle in a haystack: Patents that inspire agricultural innovation
An enhanced patent-review strategy could boost innovation capabilities for agricultural-input companies.
Patent documents are underexploited resources—not only for understanding the evolution of agricultural technology but also for assisting governments, companies, and academic institutions in the inventive process.1 More than 40,000 patents related to agricultural inputs have been granted in the past ten years. We find that a rigorous patent-review process could aid agricultural-input companies in their pursuit of innovation.
Agricultural innovation is increasingly important given the need to feed a growing global population—ten billion people by 2050, two billion more than today.2 Worldwide, agricultural production will face challenges, such as skyrocketing demand for crop calories3 and constraints on crop yields.4 In addition to addressing global challenges, enhanced patenting may also lead to better corporate financial performance. Research has shown a positive correlation between granted patents and financial performance.5 We find similar indications within the agricultural-input sector, with high-patenting firms leading their low-patenting counterparts in three-year average earnings before interest, taxes, depreciation, and amortization (EBITDA) margins by two percentage points.
Συνέχεια ανάγνωσης εδώ
Πηγή: mckinsey
