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.

Farmers in Asia like to grow cassava because the crop will tolerate long dry periods and poor soils, and will produce reasonable yields with little inputs. Most farmers realize, however, that cassava production on slopes can cause severe erosion, while production without fertilizer inputs may lead to a decline in soil productivity. Research has shown that cassava yields can be maintained for many years with adequate application of fertilizers, and that there are various ways to reduce erosion.

Biotechnology offers great potential to contribute to sustainable agricultural growth, food security and poverty alleviation in developing countries. Yet there are economic and institutional constraints at national and international levels that inhibit the poor people's access to appropriate biotechnological innovations.