Asian agriculture is faced with major new challenges as a result of globalisation, urbanisation and environmental problems such as climate change. To meet these challenges, Asian agriculture needs to become more knowledge intensive and innovation oriented. This article frames the new Asian challenge in terms of innovation theory, emphasising the importance of the co-evolution of technological and institutional change and linkages between actors in open, interactive innovation processes.

Global adoption of transgenic crops reached 67.7 million hectares in 2003 from 2.8 million in 1996. Delivery has occurred almost entirely through the private sector and adoption has been rapid in areas where the crops addressed serious production constraints and where farmers had access to the new technologies. Three countries (USA, Argentina and Canada), three crops (soybean, cotton and maize) and two traits (insect resistance and herbicide tolerance) account for the vast majority of global transgenic area.

More than 250 million Africans rely on the starchy root crop cassava (Manihot esculenta) as their staple source of calories. A typical cassava-based diet, however, provides less than 30% of the minimum daily requirement for protein and only 10%–20% of that for iron, zinc, and vitamin A. The BioCassava Plus (BC+) program has employed modern biotechnologies intended to improve the health of Africans through the development and delivery of genetically engineered cassava with increased nutrient (zinc, iron, protein, and vitamin A) levels.

Various indications that research and development efforts are escalating in developing countries indicate the slight shift of such countries from just being end markets to being developers. The aggregate adoption of biotech crops in developing countries is clearly approaching that in developed countries. The next generation biotech crops with superior traits, with improved properties and quality traits will likely be created and deployed in developing countries, particularly in Asia, where half of the world’s population dwells.

Recent studies in the literature examining impact of government seed price intervention on adoption of Bt cotton get different results depending on the specifics of the situation analyzed. According to one study, reduction in seed prices enables farmers to buy seeds at lower prices and this can result in surge of area sown under Bt cotton. The other view holds that seed price interventions have little impact on the adoption rates rather these interventions may adversely affect firms’ incentives to innovate. Which of the two views characterize adoption of Bt cotton in India?

Much has been written on the determinants of technology adoption in agriculture, with issues such as input availability, knowledge and education, risk preferences, profitability, and credit constraints receiving much attention. This paper focuses on a factor that has been less well documented: the differential ability of households to take on risky production technologies for fear of the welfare consequences if shocks result in poor harvests. Building on an explicit model, this is explored in panel data from Ethiopia. Historical rainfall distributions are used to identify consumption risk.