This paper identifies market failures that limit agricultural R&D for Africa and other resource-poor environments, and proposes a way to complement existing institutions with cash prizes for the dissemination of successful new technologies adopted by low-income farmers. The proposed prize institution would use agronomic experiments and farm surveys to document the value of innovations after their initial diffusion, and offer payments in proportion to estimated social benefits in target regions.
Empirical studies on agricultural technology adoption generally divide a population into adopters and nonadopters, and analyse the reasons for adoption or nonadoption at a point in time. In reality, technology adoption is not a one-off static decision, rather it involves a dynamic process in which information gathering, learning and experience play pivotal roles, particularly in the early stage of adoption. A conceptual framework for an adoption pathway is suggested in which farmers move from learning to adoption, to continuous or discontinuous use over time.