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    • University of Missouri-Columbia
    • College of Agriculture, Food and Natural Resources (MU)
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    • AgBioForum (Journal)
    • AgBioForum, vol. 18, no. 3 (2015)
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    •   MOspace Home
    • University of Missouri-Columbia
    • College of Agriculture, Food and Natural Resources (MU)
    • Division of Applied Social Sciences (MU)
    • Department of Agricultural Economics (MU)
    • Economics and Management of Agrobiotechnology Center (MU)
    • AgBioForum (Journal)
    • AgBioForum, vol. 18, no. 3 (2015)
    • View Item
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    Testing the Induced Innovation Hypothesis: accounting for innovation creation and innovation implementation incentives

    Shumway, C. Richard
    Cowan, Benjamin W.
    Lee, Daegoon
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    [PDF] TestingInducedInnovationHypothesis.pdf (172.5Kb)
    Date
    2015
    Format
    Article
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    Abstract
    Despite extensive empirical literature on the induced innovation hypothesis in US agriculture, this article reports only the second set of tests for this industry that account for supply as well as demand for new input-saving technology. Rather than assuming a specific innovation production function, we examine the relationship between research intensity and input prices in several different reduced-form specifications. Considering four inputs in the innovation-implementing industry—land, labor, fertilizer, and energy—we find non-trivial but limited support for the induced innovation hypothesis in public agricultural research. The most support for the hypothesis is found for research decisions aimed at saving fertilizer, followed in turn by energy, labor, and land.
    URI
    https://hdl.handle.net/10355/48145
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    • AgBioForum, vol. 18, no. 3 (2015)

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