Abstract: By using the empirical method, the missing opportunity to invest in an agricultural research institute in China is analyzed. The fact that the benefits from investing in an agricultural research institute are not immediately apparent is discussed. Instead, it takes an average more than 4 years before real results are achieved. In addition, the growth rates of the crop plantation, animal husbandry, and fishery industry are all different and affect the agricultural GDP differently. Therefore, the advice of policies and strategies on the research investment proportion and the dirtction of the agricultural industries are offered.

Key words:
agricultural research institute, investment, time lag