Table 9.1: Estimated Internal Rates of Return to Investment 

 in Research and Extension (percent) 



Returns from 

 Direct appropriable 

 Program and region 



1. Sugarcane varietal improvement 

 (chapter 3) 



a. Australia 



b. South Africa 



c. India 



2. Wheat improvement research 

 (chapter 4) 



a. Developing countries 



b. Developed countries 



3. Maize improvement research 

 (chapter 4) 



a. Developing countries 



b. Developed countries 



4. Applied research: aggregate 

 analysis (chapter 5) 



a. Developed countries 



b. Developing countries 



5. Supporting science research: 

 aggregate analysis (chapter 5) 



a. Developed countries 



b. Developing countries 



6. Agricultural research in Indian 

 states (chapter 6) 



7. Extension in India (chapter 6) 



8. Intensive agricultural program: 



India (chapter 6) 20 



Notes: 



In general the detailed estimates on which the internal rates of return are based 

 can be found in each chapter. The conversion of the marginal benefit flows to in- 

 ternal rates of return, /•, is according to: 



„ 6 



1=2 



/ = 6 



(1+^)' 





where b is the marginal return per dollar invested in research. A six-year average 

 lag between investment and benefit realization is generally assumed. 

 Specific notes to computations of categories 1-8 in table 9.1 



#1. Based on the unadjusted variety-yield estimates of table 3.7. An eight-year 

 lag is assumed for these computations: (a) basically stage 4 research; (b) diffusion 

 of stage 3 varieties. 



