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.

This article rebuts the argument that shortcomings in Bt cotton studies and divergence between yield gains and extent of adoption of Bt hybrids make it impossible to conclusively say anything about the impact of genetically modified seeds. Further, it points out that there have been numerous studies that have controlled for selection and cultivation bias, and concluded that Bt cotton has had statistically significant positive yield effects.

Agricultural biotechnology and, specifically, the development of genetically modified (GM) crops have been controversial for several reasons, including concerns that the technology poses potential negative environmental or health effects, that the technology would lead to the (further) corporatization of agriculture, and that it is simply unethical to manipulate life in the laboratory. GM crops have been part of the agricultural landscape for more than 15 years and have now been adopted on more than 170 million hectares (ha) in both developed countries (48%) and developing countries (52%).

The food production and processing value chain is under pressure from all sides—increasing demand driven by a growing and more affluent population; dwindling resources caused by urbanization, land erosion, pollution and competing agriculture such as biofuels; and increasing constraints on production methods driven by consumers and regulators demanding higher quality, reduced chemical use, and most of all environmentally beneficial practices ‘from farm to fork’.

Boll guard I & II were introduced in 2002 and 2006 by Mahyco Monsanto with Genetic Engineering Appraisal Committee, Govt. of India. Indian cotton farmers adopted Bt hybrid cotton between 2002-2013 reaching 92% of the cotton area and 95% of the production, replacing conventional hybrids/ varieties of all the species in both rainfed and irrigated conditions. Bt hybrid cotton was presumed to produce record highest average productivities in India and other major cotton growing countries also in 2007 and 2012 with a decline after 2008 due to excess rains. Farmers invested Rs.

The tools of biotechnology present an opportunity to infuse a new round of technology into Indian agriculture, which has been going through "technology fatigue" in recent period. These technologies follow from the conventional plant breeding techniques and complement them in improving crops to resist biotic and abiotic stresses, break yield barriers, and sustain yields in the face of resource degradation and climatic change.

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?