Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies
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Value chains in the agrifood sector are undergoing a rapid process of modernization,
characterized by the emergence of private standards and different systems of vertical
value chain governance. In this article we investigate the technological implications of
these developments at the farm-level. We explicitly modelled the conditions under which
technology transfer and adoption will occur in a value chain setting and reviewed the
corresponding evidence on these issues. We find that technology transfer within a value
chain can occur in an environment with imperfect credit and technology markets, but
depends on the surplus generated by the technology, the holdup opportunities of the
supplier and the type of technology. Finally, using these findings we discuss the
implications of public investment and the role of private standards as a potential catalyst
for technology adoption and transfer.