ABSTRACT
Agriculture has been subject to several waves of innovation which have significantly altered its institutional structures, its products and the way it is practised. Mechanical, biological and chemical innovations have, in turn, reduced labour requirements, increased yields and reduced the impact of agricultural pests. While agricultural biotechnology is relatively underdeveloped, medical biotechnology has become a successful business in which United States companies generate revenues of over $4 billion annually. The evolution and structure of medical biotechnology have some lessons for agricultural biotechnology, although the two also have some distinguishing features. Supply-enhancing biotechnology will generally improve consumer welfare, but may disproportionately benefit certain groups of producers. The beneficiaries will be determined by the characteristics of the technology and the distribution of producers across regions and sub-groups. Biotechnology techniques allow modification of agricultural products to enhance desirable characteristics.
