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Product Life Cycles and Innovation in the US Seed Corn Industry

Author

Listed:
  • Magnier, Alexandre
  • Kalaitzandonakes, Nicholas G.
  • Miller, Douglas J.
Abstract
The purpose of this study is to evaluate potential changes in the length of product life cycles in the US seed corn industry. We use the observed survival time on the market for hybrids sold during 1997-2009 to conduct a survival analysis. Our empirical results show that the expected lifetimes for corn hybrids with single biotech traits are 5-15% longer than for hybrids with multiple (stacked) traits, and the expected lifetimes for conventional corn are 13-17% longer than stacked hybrids. Also, the product life cycles for all types of hybrids have decreased over the past twelve years (especially after 2004), but the rate of decline is roughly similar across hybrid types. Based on this evidence, we conclude that the shorter product life cycles are closely linked to the accelerated levels of biotech product innovation in the US seed corn industry over the period of analysis.

Suggested Citation

  • Magnier, Alexandre & Kalaitzandonakes, Nicholas G. & Miller, Douglas J., 2010. "Product Life Cycles and Innovation in the US Seed Corn Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 13(3), pages 1-20, September.
    • Handle: RePEc:ags:ifaamr:93557
    DOI: 10.22004/ag.econ.93557
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    References listed on IDEAS

    as
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    4. Dooley, Frank J. & Kurtz, Matthew M., 2001. "The Effect Of A Changing Market Mix In Seed Corn On Inventory Costs," 2001 Annual meeting, August 5-8, Chicago, IL 20741, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    8. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-583, June.
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    Cited by:

    1. Seungki Lee & GianCarlo Moschini, 2020. "Estimating the Value of Innovation and Extension Information: SCNResistant Soybean Varieties," Center for Agricultural and Rural Development (CARD) Publications 20-wp603, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Saavoss, Monica & Capehart, Thomas & McBride, William D & Effland, Anne, 2021. "Trends in Production Practices and Costs of the U.S. Corn Sector," Economic Research Report 327190, United States Department of Agriculture, Economic Research Service.
    3. Kalaitzandonakes, Nicholas & Magnier, Alexandre, 2013. "The economics of adventitious presence thresholds in the EU seed market," Food Policy, Elsevier, vol. 43(C), pages 237-247.
    4. MacDonald, James M. & Dong, Xiao & Fuglie, Keith O., 2023. "Concentration and Competition in U.S. Agribusiness," Economic Information Bulletin 337566, United States Department of Agriculture, Economic Research Service.
    5. Shakya, Sumadhur & Wilson, William W. & Dahl, Bruce L., 2013. "Valuing New Random Genetically Modified (GM) Traits in Corn," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(1), pages 1-17, April.
    6. Bastgen, A. & Holzner, C.L., 2017. "Employment protection and the market for innovations," Labour Economics, Elsevier, vol. 46(C), pages 77-93.
    7. Feeney, Roberto Juan & Harmath, Pedro & Clay, Pablo Mac, 2020. "Brand Loyalty in Argentine Commercial Crop Seed Markets," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 9, April.
    8. Shakya, Sumadhur & Wilson, William W. & Dahl, Bruce L., 2012. "Valuing New Random GM Traits: The Case of Drought Tolerant Wheat," Agribusiness & Applied Economics Report 128033, North Dakota State University, Department of Agribusiness and Applied Economics.
    9. Federico Ciliberto & GianCarlo Moschini & Edward D. Perry, 2019. "Valuing product innovation: genetically engineered varieties in US corn and soybeans," RAND Journal of Economics, RAND Corporation, vol. 50(3), pages 615-644, September.
    10. Perry, Edward & Hennessy, David A. & Moschini, GianCarlo, 2018. "Planting Rates in U.S. Maize: Improved Varieties and Learning," 2018 Annual Meeting, August 5-7, Washington, D.C. 274341, Agricultural and Applied Economics Association.
    11. Melinda Smale & John Olwande, 2014. "Demand for maize hybrids and hybrid change on smallholder farms in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 409-420, July.

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