Inappropriate Technology: Evidence from Global Agriculture

Abstract

An influential explanation for global productivity differences is that frontier technologies are adapted to the high-income countries that develop them and "inappropriate" elsewhere. We study this hypothesis in agriculture using data on novel plant varieties, patents, output, and the global range of crop pests and pathogens. Innovation focuses on the environmental conditions of technology leaders, and ecological mismatch with these markets reduces technology transfer and production. Combined with a model, our estimates imply that inappropriate technology explains 15-20% of cross-country agricultural productivity differences and re-shapes the potential consequences of innovation policy, the rise of new technology leaders, and environmental change.

Keywords: inappropriate technology, technology diffusion, productivity gaps, agriculture, biotechnology, crop pests and pathogens

JEL Classification: O3, O33, O4, O44, Q1, Q56, Q57