A FARM LEVEL PERSPECTIVE ON AGROBIOTECHNOLOGY

Research and Development/Tech Change/Emerging Technologies,

ECONOMIC EFFECTS OF PURITY STANDARDS IN BIOTECH LABELING LAWS

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.agricultural biotechnology, genetically modified products, labeling, purity standards, Consumer/Household Economics,

A TEST OF ASSET FIXITY IN SOUTHEASTERN U.S. AGRICULTURE

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.Financial Economics,

COMPETITIVE PRESSURE AND PRODUCTIVITY GROWTH: THE CASE OF THE FLORIDA VEGETABLE INDUSTRY

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.Productivity Analysis,

Understanding the Adoption of Cotton Biotechnologies in the US: Firm Level Evidence

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.Industrial Organization,

VERTICAL AND HORIZONTAL COORDINATION IN THE AGRO-BIOTECHNOLOGY INDUSTRY: EVIDENCE AND IMPLICATIONS

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.Acquisitions, Agricultural biotechnology, Firm strategy, Industry consolidation, Industry structure, Mergers, Industrial Organization, Research and Development/Tech Change/Emerging Technologies,

PUBLIC OPINION OF AGBIOTECH IN THE US AND UK: A CONTENT ANALYSIS APPROACH

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.content analysis, mass media reporting, agricultural biotechnology, Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession,

THE RESPONSE OF CORN FUTURES MARKETS TO AGRO-BIOTECHNOLOGY NEWS

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.Marketing, Research and Development/Tech Change/Emerging Technologies,

The Entrepreneur's Choice of Location: Evidence from the Life Sciences

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 entrepreneurs personal characteristics, and characteristics of the business environment affect the entrepreneurs 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.entrepreneurship, biotechnology, clusters, knowledge spillovers, agglomeration economies, Industrial Organization, L26, L65, O18, O32,

GMO Testing Strategies and Implications for Trade: A Game Theoretic Approach

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.GMO testing, measurement uncertainty, identity preservation systems, agricultural trade, International Relations/Trade,