Apple Industry Performance, Intellectual Property Rights and Innovation

Abstract

This study examines the changing structure of the apple industry in Canada and the United States over the last two decades. We attempt to describe whether changing policy environments (e.g., Canada-U.S. Free Trade Agreement) and strengthened intellectual property (IP) rights have affected innovativeness and the competitive position of the North American apple industry. Our analysis shows that Canadian apple production has been on a decline, with apple imports expanding to satisfy production shortfalls and changing consumer preferences for cultivar diversity and year-round supply. By contrast, U.S. apple production expanded in the 1990s because of strengthened exports stemming from export promotion programs and slight increases in foreign demand in selected Asian markets. Our results show that U.S. inventors are protecting their IP by the use of patents to a larger extent than their Canadian counterparts.

Key Words:

• Canada
• U.S.
• apple production and trade
• intellectual property rights
• innovation