The Unintended Consequences of Biotechnology Innovation Adoption

44 Pages Posted: 20 Dec 2018

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

Sofia Johan

Florida Atlantic University - Finance; Tilburg Law and Economics Center (TILEC)

Christian Oberst

Silver Oak Services Partners

Ikenna S. Uzuegbunam

Ohio University

Date Written: November 1, 2018

Abstract

The notion that technological innovation can benefit the economic and social well-being of a society is well accepted, but less examined is the potential that the adoption of new technologies may inadvertently lead to adverse effects in society. In this study, we consider the potential effects of adoption of agricultural biotechnology innovation in the context of the U.S. agrarian economy. We also consider the intervening impact of social innovation in the agrarian sector – in the form of certified organic operations — in this framework. Using panel data techniques on a representative sample of U.S. states, we show that increasing the adoption of agricultural biotechnology innovation in a state (i.e. the proportion of planted seeds that are genetically engineered seeds) is associated with increasing food insecurity and increasing obesity rates in a state. Furthermore, the findings indicate that certified organic operations have a positive influence on economic and social well-being. These findings offer initial insights into unforeseen demand side effects of product innovation adoption, while indicating promising avenues for future research and policy.

Keywords: biotechnology, technological innovation, social innovation, certified organic operations

JEL Classification: O13, L65, D62

Suggested Citation

Cumming, Douglas J. and Johan, Sofia A. and Oberst, Christian and Uzuegbunam, Ikenna S., The Unintended Consequences of Biotechnology Innovation Adoption (November 1, 2018). Available at SSRN: https://ssrn.com/abstract=3297176 or http://dx.doi.org/10.2139/ssrn.3297176

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Sofia A. Johan

Florida Atlantic University - Finance ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Christian Oberst

Silver Oak Services Partners ( email )

1560 Sherman Avenue
Suite 1200
Evanston, IL 60201
United States

Ikenna S. Uzuegbunam

Ohio University ( email )

Copeland Hall
1 Ohio University
Athens, OH 43147
United States

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