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Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies

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  • Rob Kuijpers
  • Johan Swinnen

Abstract

Value chains in the agrifood sector are undergoing a rapid process of modernization, characterized by the emergence of private standards and different systems of vertical value chain governance. In this article, we investigate the technological implications of these developments at the farm level. We model the conditions under which technology transfer and adoption will occur in a value chain setting and review the corresponding evidence on these issues. We find that technology transfer within a value chain can occur in an environment with imperfect credit and technology markets but depends on the surplus generated by the technology and the holdup opportunities within the value chain. We also discuss how these holdup opportunities affect bargaining power and the division of surplus and how the nature of the technology affects technology transfer and the implications for value chain governance.

Suggested Citation

  • Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    • Handle: RePEc:oup:ajagec:v:98:y:2016:i:5:p:1403-1418.
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    File URL: http://hdl.handle.net/10.1093/ajae/aaw069
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    Cited by:

    1. Kusnandar, Kusnandar & Apriyanto, El Bram & Akbar, Maulana & Apriliyadi, Eki Karsani & Perdana, Tomy, 2024. "Understanding how governance arrangements within agricultural supply chains influence farmers' SAP adoption for adaptation and mitigation practices," Agricultural Systems, Elsevier, vol. 220(C).
    2. repec:lic:licosd:41019 is not listed on IDEAS
    3. Erwin Bulte & Robert Lensink, 2023. "Why agricultural insurance may slow down agricultural development," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1197-1220, August.
    4. Hobbs, J., 2018. "Transaction Costs, Institutions and the Organization of Supply Chains: Three Good Questions," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277411, International Association of Agricultural Economists.
    5. repec:ags:ijag24:344551 is not listed on IDEAS
    6. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    7. Tao, Yongming & Muneeb, Farhan Muhammad & Wanke, Peter Fernandes & Tan, Yong & Yazdi, Amir Karbassi, 2024. "Revisiting the critical success factors of entrepreneurship to promote Chinese agriculture systems: A multi-criteria decision-making approach," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    8. Saule Burkitbayeva & Emma Janssen & Johan Swinnen, 2020. "Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 433-479, September.
    9. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    10. Kim, Jong-Seok & Kim, Byung-Keun, 2022. "Examining different technology transfer capabilities and their counterpart works from two different positions," Technology in Society, Elsevier, vol. 68(C).
    11. Janssen, Emma & Swinnen, Johan, 2019. "Technology adoption and value chains in developing countries: Evidence from dairy in India," Food Policy, Elsevier, vol. 83(C), pages 327-336.
    12. Swinnen, Johan & Kuijpers, Rob, 2019. "Value chain innovations for technology transfer in developing and emerging economies: Conceptual issues, typology, and policy implications," Food Policy, Elsevier, vol. 83(C), pages 298-309.
    13. Nimisha Pandey & Heleen de Coninck & Ambuj D Sagar, 2022. "Beyond technology transfer: Innovation cooperation to advance sustainable development in developing countries," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(2), March.
    14. Bonjean, Isabelle, 2019. "Heterogeneous incentives for innovation adoption: The price effect on segmented markets," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    15. Malak-Rawlikowska, Agata & Milczarek-Andrzejewska, Dominika, 2016. "How do Farmers interact with Input Suppliers: Some Evidence from the Dairy Sector in Poland," 2016 International European Forum (151st EAAE Seminar), February 15-19, 2016, Innsbruck-Igls, Austria 244537, International European Forum on System Dynamics and Innovation in Food Networks.
    16. Malak-Rawlikowska, Agata, 2018. "Are Farmers Trapped in Hold-Up Relationships? The Case of Dairy Farmers and Feed Suppliers," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 181(4), December.
    17. Kuijpers, Rob, 2020. "Integrated Value Chain Development: Evidence from Bangladesh," Food Policy, Elsevier, vol. 97(C).
    18. Saeed Khalifa Alshaali & Somayyah Abdulla AlYammahi, 2022. "The Innovation Management Modelling in the Water Sector in the United Arab Emirates: A Mixed-Methods Study," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 12(2), pages 1-1, December.
    19. Malak-Rawlikowska, Agata & Milczarek-Andrzejewska, Dominika, 2016. "Relacje rolników z dostawcami środków produkcji – na przykładzie sektora mleczarskiego w Polsce," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 2(171).
    20. repec:lic:licosd:41419 is not listed on IDEAS
    21. Agata Malak-Rawlikowska & Dominika Milczarek-Andrzejewska & Jan Fałkowski, 2019. "Farmers’ Bargaining Power and Input Prices: What Can We Learn from Self-Reported Assessments? 1," Social Sciences, MDPI, vol. 8(2), pages 1-13, February.

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    Keywords

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    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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