Valuing Research Leads: Bioprospecting and the Conservation of Genetic Resources

Building a scenario based active mapping investment tool within a physical asset management framework

“…The greater the uncertainty, the more ROA decision criteria and techniques impact on the final decision. Rausser and Small (2000), in their unique perspective, find that ROA can be implemented very successfully if companies start picturing platform investments as long-term profit opportunities. These platform investments are based on investing a little at a time and waiting for new information on the investment potential/ opportunity.…”

“…These platform investments are based on investing a little at a time and waiting for new information on the investment potential/ opportunity. Rausser and Small (2000) see these platform investments as renting information, rather like a call option premium. In other words, as for an option, firms should view the cost of laying the foundation for long-term investments as the price to pay for the option to enter some business opportunity in the future (Miller & Chan, 2002).…”

Bioprospecting: Creating a Value for Biodiversity

“…However, there is currently little demand from companies for samples of natural product extracts, and the brokerage activity has stopped. Another approach to valuation of biodiversity has argued that a value can be put on the potential contribution of an area of land to drug discovery (Simpson et al, 1996;Rausser & Small, 2000). Depending on the assumptions used, this varied from $21 per hectare (Simpson et al, 1996) to $9,177 per hectare (Rausser & Small, 2000).…”

“…Another approach to valuation of biodiversity has argued that a value can be put on the potential contribution of an area of land to drug discovery (Simpson et al, 1996;Rausser & Small, 2000). Depending on the assumptions used, this varied from $21 per hectare (Simpson et al, 1996) to $9,177 per hectare (Rausser & Small, 2000). The latter valuation was thought to be sufficient to provide an economic reward to sustain biodiversity conservation.…”

An Economic Model for Bioprospecting Contracts

“…In other words, it will be possible to provide higher quality samples or synthetic compounds, or obtain the same sample processing results with a lower field collection effort, and thus reduce the pressure of habitat loss and species extinction. (ICBG 1997;Rausser and Small 2000).…”