Agriculture Reference
In-Depth Information
and.investments.made.in.Stage.1..The.outcome.of.this.bargaining.is.a.decision.that.
lies. between. the. noncooperative. bargaining. solution. (where. each. partner. unilater-
ally. exercises. their. control. rights). and. the. cooperative. bargaining. solution. (where.
the.partners.maximize.their.joint.beneit)..In.Stage.3,.there.may.be.an.unanticipated.
“shock.”.For.our.purposes,.a.shock.is.an.event.that.affects.the.partnership.over.which.
there.are.no.explicit.contract.provisions..Such.a.shock.may.cause.the.players.to.revisit.
their.control.and.property.rights..Depending.on.the.nature.of.the.shock,.the.partners.
may.engage.in.renegotiation.that.reassigns.the.control.and.property.rights.(and.begin.
again.at.Stage.1).or.they.may.conclude.the.partnership.
The.remainder.of.the.chapter.is.organized.as.follows:.in.the.“Operational.framework”.
section,. we. present. the. three-stage. framework. for. evaluating. public-private. research.
contracts;.in.the.“General.guidelines”.section,.general.guidelines.for.university-private.
partnerships. in. research. and. development. (R&D). are. provided;. and. in. the. “Public-
private.partnerships.in.horticultural.research”.section,.we.visit.the.implications.of.our.
framework.for.PPPs.in.horticultural.research.and.more.speciically.for.the.development.
and.commercialization.of.transgenic.horticultural.crops.
OPERATIONAL FRAMEWORK
There.is.a.considerable.body.of.literature.related.to.PPP.theory,.and.the.reader.inter-
ested. in. developing. a. greater. depth. of. knowledge. in. this. area. is. directed. to. these.
selected.citations.
1-14
In.this.section,.we.describe.an.operational.framework.that.can.be.used.as.a.con-
ceptual.lens.to.analyze.PPP.contracts.in.horticultural.research.that.includes.the.terms.
and.conditions.used.to.assign.front-end.control.rights.and.back-end.property.rights..
The.following.three-stage.framework.provides.a.lens.that.will.allow.us.to.evaluate.
PPP.contracts.
S
taGe
1: S
ettInG
the
b
arGaInInG
S
pace
and
n
eGotIatInG
the
c
ontract
In.Stage.1,.the.partners.negotiate.a.contract.and.make.investments..The.public.insti-
tution. should. begin. this. process. with. a. self-assessment. to. identify. their. primary.
objectives.in.seeking.out.private.partners,.their.strengths.and.assets,.and.the.desired.
complementarities..This.assessment.is.essential.to.form.an.eficient.partnership.
Though. the. order. in. which. partnership. negotiations. proceed. is. not. of. much.
consequence,.it.is.vital.for.the.public.institution.to.be.deliberately.early.in.the.pro-
cess,.when.seemingly.innocuous.decisions.ex-ante.may.severely.limit.its.control.or.
lexibility.at.crucial.junctures.ex-post..At.each.point.in.a.relationship,.it.is.important.
for.the.public.institution.to.consider.the.long-term.consequences.of.all.relationship-
related.decisions.
Consider.the.importance.of.the.public.institution's.method.for.inding.and.select-
ing.a.partner..Often.irms.seek.government.contracts.and.make.speciic.offers,.leaving.
public.institutions.the.passive.role.of.waiting.to.be.approached.and.evaluating.one.
partnership.at.a.time..Alternatively,.the.public.institution.can.take.a.proactive.role..
Given. the. results. of. the. self-assessment,. the. public. institution. can. seek. out. well-
matched.partners.that.complement.their.strengths..Although.deliberately.seeking.out.
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