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The purpose of this study is to evaluate potential changes in the length of product life cycles in the US seed corn industry. We use the observed survival time on the market for hybrids sold during 1997-2009 to conduct a survival analysis. Our empirical results show that the expected lifetimes for corn hybrids with single biotech traits are 5-15% longer than for hybrids with multiple (stacked) traits, and the expected lifetimes for conventional corn are 13-17% longer than stacked hybrids. Also, the product life cycles for all types of hybrids have decreased over the past twelve years (especially after 2004), but the rate of decline is roughly similar across hybrid types. Based on this evidence, we conclude that the shorter product life cycles are closely linked to the accelerated levels of biotech product innovation in the US seed corn industry over the period of analysis.

By most measures, adoption of first generation crop biotechnologies in the United States and elsewhere has been extremely fast. Yet, only modest research effort has been devoted to understanding why producers in different parts of the world have adopted these technologies at such rapid rates. In this paper, we analyze producer decisions on whether to adopt three separate cotton biotechnologies in the US and to what extent. We find that US cotton producers tend to choose bundles of conventional technologies, agrobiotechnologies and relevant agronomic practices out of many possible ones. Hence, their behavior is characterized by multiple simultaneous and interdependent adoption decisions. Furthermore, US cotton producers partially adopt one or more of the biotechnologies, probably, as a way of optimizing their use through “learning by doing” thereby incorporating complex dynamic considerations in their decision process. By most measures, adoption of first generation crop biotechnologies in the United States and elsewhere has been extremely fast. Yet, only modest research effort has been devoted to understanding why producers in different parts of the world have adopted these technologies at such rapid rates. In this paper, we analyze producer decisions on whether to adopt three separate cotton biotechnologies in the US and to what extent. We find that US cotton producers tend to choose bundles of conventional technologies, agrobiotechnologies and relevant agronomic practices out of many possible ones. Hence, their behavior is characterized by multiple simultaneous and interdependent adoption decisions. Furthermore, US cotton producers partially adopt one or more of the biotechnologies, probably, as a way of optimizing their use through “learning by doing” thereby incorporating complex dynamic considerations in their decision process.

Since their commercial introduction in 1996, genetically modified (GM) crops have been quickly adopted world wide, but some GM crops/varieties have not received regulatory approval for use in some importing countries, leading to asynchronicity in regulatory approvals. In this context, the international agricultural trade relied on analytical GMO testing which is a statistical process, along with identity preserved systems to segregate GM and non-GM crops. This led to a situation where measurement uncertainty became an important issue as it can lead to potential holdups at the point of import. In this background, this paper examines the implications of measurement uncertainty associated with GMO testing on the behavior of importers and exporters in a game theoretic framework. The results indicate that relative size of identity preservation costs, testing and rejection costs, the premiums offered in the non- GM markets and measurement uncertainty all have direct impacts on the behavior of importers and exporters.

Genetically modified (GM) crops have been largely adopted in major exporting countries thereby representing a dominant share of a few key agricultural commodities that are traded in international markets. Regulatory reviews and approvals for the cultivation and marketing of GM crops, however, are country-specific and significant discrepancies in the amount of time required to review and approve new GM crops between importing and exporting countries has led to “asynchronous approvals”. Trade disruptions created by asynchronous approvals of GM crops are expected and can quickly deteriorate into effective trade bans because perfect segregation between approved and unapproved GM crops is difficult. The issues we examine in this paper are the potential market and welfare impacts from trade disruptions that might be caused by asynchronous regulatory approvals of new GM crops. We develop a trade model consisting of two composite importing countries and one exporting country. We first derive a baseline equilibrium where no unapproved events exists. When then derive a second equilibrium so that the market and welfare impacts of asynchronous approval on consumers and producers in each composite country can be analyze and discussed. We found that asynchronous approvals tend to increase prices, reduce consumer surplus and increase profits of producers of identity preserved commodities in all countries. However, we found that the aggregate quantities consumed and the profits of commodity producers are depend on the relative size of the export market in the countries where event are not approved.

The U.S. appears committed to the ongoing use of ethanol biofuels. In order to realize the desired benefits, ethanol production must continue to become more efficient. Although many technologies have emerged to improve efficiency this article focuses on the role that corn biotechnology might play. Biotechnology offers the potential to increase yields and lower input use as well as aid the conversion of corn to ethanol. This could have a meaningful impact on the energy balance and greenhouse gas emissions of ethanol production. This article finds those impacts to be significant, although likely to be eclipsed by cellulosic biofuels. However, the realization of any such benefits is conditioned by prevailing market and policy conditions. In a world where the market is less constrained by policy, increased yields afforded through biotechnology would increase corn production, which leads to lower corn price and larger ethanol production volume. When expected policies, most notably the Renewable Fuel Standard, are considered the impacts of biotechnology change. The Renewable Fuel Standard effectively limits the amount of corn based ethanol that is consumed as it shifts production towards cellulosic feedstocks. Despite the increase in corn production and reduced corn price there are only marginal increases in ethanol production volume. Accordingly, the RFSs support of competing biofuels might limit some dimensions of the ethanol industry including its ability to fully benefit from corn biotechnologies.

Why do biotech firms cluster? New and established firms in biotech clusters are said to capitalize on knowledge spillovers, labor-market pooling, and other externalities. Some have even argued that such spillovers are so strong that the cluster itself, rather than the individual, is the locus of entrepreneurship. Such arguments, however, do not resolve the mechanism by which clusters might contribute to the establishment of new firms. This paper proposes a conceptual framework for analyzing the locational choices of entrepreneurial firms in the life-sciences industry. Building on both the cluster literature and the literature on entrepreneurship, we develop hypotheses about how cluster characteristics, the entrepreneur's personal characteristics, and characteristics of the business environment affect the entrepreneur's decision to establish a new firm. We argue that a key factor in the location decision is the relative mobility of the appropriate resources. Our main hypothesis is that specialized labor is less mobile than capital and other resources and that it is the base from which entrepreneurs are ultimately created. If so, new firms will emerge in areas characterized by an existing concentration of specialized labor. This labor pool may be spawned by universities and incumbent small and larger biotech (or other high-technology) companies. An alternative explanation is that entrepreneurs establish new ventures outside the cluster, then move them to the cluster to take advantage of local knowledge and other resources. Or a potential entrepreneur could conceive a business plan, then relocate to an existing cluster before founding a firm. We explain how survey data can be used to sort through these explanations.

The main purpose of this research is to analyze impact of adoption of bio-tech herbicide resistant soybeans in China by producers at different adoption rates as determined by technology fees. This adoption will impact China's production, consumption, global trade and competitiveness and world prices. Current research indicates approximately 20-25 percent of Urban consumers will not consume bio-tech vegetable oils. The USDA-ERS China model is used to address the trade impacts of commercializing bio-tech soybeans in China. On the supply side soybeans are differentiated into bio-tech and non-bio-tech soybeans. Similarly, demand and excess demand are decomposed into two distinct market segments. We present preliminary results from modeling the impacts of commercializing herbicide-tolerant biotech soybeans in China under two scenarios of adoption rates in response to the level of technology fees charged to the producers, a low technology fee and a high technology fee. The high technology fee is the policy most likely to be adopted by the Chinese government and exhibits a more realistic results. Adoption of biotech soybeans is relatively low given the high technology fees and only a gradual increase in production of biotech soybeans. The production of non-biotech soybeans within China is almost sufficient to satisfy domestic demand for non-biotech soybeans by a relatively small percent of urban consumers with a strong preference for non-biotech soybeans and soybean oil. The international effect on production, trade and prices are quite minimal and China's import demand of soybeans is not significantly affected., Replaced with revised version of paper 06/12/07.

This paper develops a model of heterogeneous consumer preferences to analyze the market and welfare effects of reduced purity standards for non-GM labeled food. Analytical results show that purity standards affect the equilibrium prices and quantities of both the GM and non-GM products as well as the welfare of the groups involved. A change in purity standards is shown to create winners and losers among the consumers as well as among the suppliers of the GM and conventional products.

We develop a property rights-transaction costs framework called the Coasian Lens (CL). We argue the CL captures Coase's seminal ideas (1937; 1960) more closely than the Coase Theorem. We use the CL to examine how regulation of genetically modified organisms (GMOs) may affect contract structures in the global agri-food chain.

Using a conditional nonlinear AIDS model and three years of syndicated, national-level weekly point-of-purchase scanner data, we empirically estimate the consumer response to the Starlink recall while controlling for relative prices, per capita real expenditure, holidays, post-recall demand trends and the media. In the salted snacks product category, acute media coverage reduced the expenditure share for the recalled products and those shares nearly recovered 12 months post-recall. Expenditure shares in the chili seasonings product category were unaffected by the recall and media coverage.

This study examines media coverage of genetically modified (GM) crops in a risk communication framework. Content analysis is employed to investigate how specific environmental, food safety, and landmark events, such as the monarch butterfly and Pusztai controversies, and the cloning of Dolly-the-sheep, were reported by the media. Media coverage is from United Kingdom and United States newspapers over the period 1990 through 2001. On balance, findings show that the UK press has been more negative than the U.S. press in its coverage of GM crops. In addition, environmental and food safety events had a significant impact on the level and cycle of GM crop coverage.

In 1998 the European Union placed a moratorium on the planting of transgenic crops within its borders. The resulting ban on biotech crops has led to the current trans-Atlantic trade dispute between the United States and the EU. At the heart of this dispute is the issue of consumer acceptance. The EU’s current position is predicated on perceived public concerns about biotech foods which found a voice in numerous opinion polls conducted during the late 1990s (e.g., European Commission, 1997, 2000). Such concerns have also been amplified by intense media coverage and resulting political activism. Given the pivotal role that consumer opinion has played in recent EU policy, an understanding of how consumers value biotech foods is critical to informed policymaking. To date three main approaches have been used to gauge how consumers might respond to genetically modified (GM) foods if they were labeled as such. Opinion or attitudinal surveys are one approach. Two other approaches that are also being used are choice experiments and experimental (auction) market methods. This paper provides a brief overview of each approach, their predictions regarding consumer willingness to pay(WTP) for biotech foods, and their potential advantages and pitfalls in predicting actual consumer behavior in the market place.

With the dramatic changes occurring in the agricultural industries, it is critical to develop and maintain competencies that will enhance one's competitive position in this rapidly evolving market. The skills or capacities required to be successful are dynamic capabilities which embrace new ideas, change, innovation, analysis, integration, and teamwork-capabilities which may not be part of the experience base in the more traditional agriculture of the past.

Consumer perceptions of the potential negative side effects to the body and to the environment as well as consumer opinion regarding ethical issues of developing transgenic products has caused melee at times in the food marketing chain. This has prompted some firms, e.g., Frito Lay and Gerber, to publicly announce that grains and oilseeds produced using transgenic seed will not be used as an ingredient in the production of food. This research found little to support the notion that agro-biotechnology news and/ or recall/non-use announcements affected the CBOT corn futures market. As hypothesized, this result suggests that the market for non-transgenic corn is small relative to aggregate corn supply and demand, which the CBOT corn futures market represents.

In this paper, we use content analysis to examine the use of sources by US and UK newspaper reporters from 1990 to 1999. Positive (benefit) or negative (risk) messages are correlated with the "source" type in order to determine the degree of source-message heterogeneity in media reporting of agrobiotechnology.

The question in the title is divided into: (1) Can we trade the current generation of products from biotech or the technology itself? and (2) Can we trade the future generations of products of the technology? Controversy over the first generation of products has resulted in international trade being segmented into two markets: GMO-free and GMO. The first market is supported by voluntary labelling, making mandatory labelling largely unnecessary. While trade flows have been rearranged, markets have been little affected. We conclude that trade in the future generation will be dominated by capital and technology flows, with production for local markets dominating product trade flows.

In this paper we use content analysis to show trend in public opinion of agrobiotechnology in the United Kingdom (UK) and the United States (US). We test for the degree of positive and negative content in mass media reporting over the period 1995-1998. Specifically, we test whether there are qualitative and quantitative differences between three national daily newspapers - the Daily Telegraph (UK), USA Today (US), and the Washington Post (US) - based on reporting of agrobiotechnology. Results indicate that content has become more negative in the UK over the time period while reporting the US has not significantly changed. Results indicate that both the BSE and Pusztai crises had an impact on the proportion of negative reporting in the Daily Telegraph.

Agro-biotechnology is evolving from a pre-commercial phase dominated by basic research science to a commercial phase oriented around marketing products. In pursuing innovation rents in the commercial phase, firms are reorienting their strategies around complementary marketing and distribution assets. This is impacting vertical and horizontal industry structure. Conversely, industry structure is also impacting firm strategies. Horizontal alliances and consolidation continue from the pre-commercial phase into the commercial phase, while vertical coordination and integration strategies are accelerating rapidly. Interplay between firm strategy and industry structure is too complex for firms to anticipate early in the pre-commercial phase for long-term strategy formulation.

In this study it is argued that conflicting empirical results on the relationship between technical efficiency and education may be in part attributed to difficulties in the measurement of key variables. Calculation of technical efficiency with three alternative frontier methods for a sample of Guatemalan corn farms resulted in significant differences both in the average technical efficiency of the sample and the efficiency rankings of individual farms. Furthermore, following two-step procedures where technical efficiency is regressed against a set of explanatory variables, it is shown that the choice of efficiency measurement technique can alter the importance of education as a contributing factor to increased technical efficiency. An alternative approach is presented for investigating the relationship between education and efficiency while accounting for difficulties in the measurement of conceptual variables and measurement errors.

This study investigated the influence of economic, personal, and attitudinal factors on the intended conservation effort of a sample of Conservation Reserve Program (CRP) contract holders after their contracts have expired. Economic factors were found to dominate the decision about future conservation effort. Attitudes towards conservation were found to have no significant influence on the decision. This fact may relate to the recent changes in the regulatory environment brought about by the 1985 Food Security Act which changed conservation from a voluntary to regulated nature.

The relationship between the degree of competitive market pressure and the rate of productivity growth is empirically investigated with a case study of the Florida fresh winter vegetable industry. The results indicate that crops which faced considerable competitive pressure exhibited significant productivity growth while the crops that faced minimal competitive pressure generally exhibited little growth in productivity. Thus, the hypothesis that competitive pressure is positively related to productivity growth is supported.

A test for static equilibrium developed by Schankerman and Nadiri is used to evaluate the hypothesis that land and capital in aggregate southeastern U.S. agriculture behave as fixed inputs. Empirical results reject the hypothesis that these two inputs are at their long-run equilibrium levels implied by observed prices. Thus, some degree of asset fixity may be concluded.