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The American sugar industry evolved between 1500 and t800 as planters adopted innovations in land use and in the mills, Planters were more innovative in some colonies than in others so that marked regional differences in the management of the industry emerged. The literature describes these innovations but does not explain their pattern of diffusion. This paper provides such an explanation in the form of a model in which the key variables are the net benefits of innovation, resources, and markets. The model shows that high net benefits, scarce or depleting resources, and competitive markets encouraged innovation: low net benefits, abundant resources, and competitive markets encouraged traditionalism. The model also contributes to two important debates in plantation historiography and suggests further avenues of research. [ABSTRACT FROM AUTHOR]