Public R&D Meets Economic Development: Embrapa and Brazil’s Agricultural Revolution
Can public R&D in developing countries raise productivity? We study how Brazil’s Embrapa—a public research corporation founded in 1973 to develop locally-relevant agricultural technologies—shaped agricultural development. Researcher-level micro-data reveal that Embrapa shifted innovation toward staple crops and Brazil-specific ecology, with no decline in researcher productivity. Exploiting Embrapa’s staggered expansion alongside municipality-level variation in the ecological suitability of Em-brapa’s innovation, we find significant increases in agricultural productivity, concen-trated in targeted staple crops. Our estimates imply that Embrapa raised aggregate agricultural productivity by 110% with a benefit–cost ratio of 17, driven by the appli-cability of Embrapa’s innovation across Brazil.
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Copy CitationAriel Akerman, Jacob Moscona, Heitor S. Pellegrina, and Karthik Sastry, "Public R&D Meets Economic Development: Embrapa and Brazil’s Agricultural Revolution," NBER Working Paper 34213 (2025), https://doi.org/10.3386/w34213.Download Citation
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Non-Technical Summaries
- Global R&D investment is concentrated in a handful of high-income countries. When it is targeted to their specific needs, it may have...