Content
This course covers the determinants of technology adoption and innovations and their effects on
economic, environmental, and social outcomes.
The course consists of lectures and seminar activities. The lectures are devided in six blocks:
1) Role and Relevance of Innovation and Technology
2) Theoretical Models on the Economics of Innovation and Technology
3) Empirical Models on the Economics of Agricultural Innovation and Technology
a) Matching and classification
b) Regression Discontinuity Design
c) Instrumental Variables
d) Difference-in-Differences
e) Synthetic Control
4) Seminal Articles
5) Recent Trends
6) Open Questions and Presentations
In the seminar the students present specific technological and economic articles followed by
discussions.
Learning outcomes
After successful completion of the course, the students will be able to:
(1) apprehend the basic concepts of technology and its role on the economic development,
(2) understand the socio-economic effects and relevance of agricultural innovations,
(3) explore the reasons why innovations usually do not instantly and fully diffuse,
(4) select and apply the appropriate economic methods used to understand points (1) and (2),
(5) critique journal articles pertaining to economics of technology innovation and adoption,
especially regarding research methodology and topics (e.g. experiments investigating behavioral
biases, estimation of profit heterogeneity).
(6) examine whether a research design is able to identify the effects and / or adoption determinants
of an agricultural technology
(7) provide hands-on practice to implement these research designs
(8) identify what kind of research would make a significant contribution to the field of innovation
economics..
Examination
There will be a written exam (Klausur) of 120 minutes at the end of the semester. The students
will be asked to demonstrate their ability to understand and analyze concepts and methodological
approaches of the economics of technology and innovation using conceptual frameworks and
methods currently used in the field. A written exam is necessary in order to assess the holistic
understanding and analytical competencies of the students.
The students are requested to demonstrate that they understand the implications of innovation
adoption (e.g. the potential effect of an innovation for non-adopters), can distinguish between the
effects of various constraints and incentives on adoption (e.g. profitability and access to credit),
and are aware of commonly known methodological pitfalls (e.g. omitted variable bias, reverse
causality). In addition, the student will have the ability to create their own research designs on
specific case studies provided by the instructors.
Prerequisites
Basics of microeconomics, statistics, econometrics
Teaching & learning methods
Half the course (2SWS) consists of lectures, the other half (2SWS) consists of student
presentations and discussions. In the Lecture part of the course, theoretical concepts and practice
exercises will be given by the lecturers on the blackboard and by PowerPoint presentations to
build the required knowledge base in innovation and technology economics. In addition, under
the supervision and help of the lecturer, in-class application exercises will be used to create real-
world problems for which students in randomly assigned groups will create and solve problems.
Discussion of relevant scholarly articles and literature will be used to aid understanding of the
topic covered. The lectures will promote the basics and the seminar will build upon this. This
encourages the students to independently and self-reliantly study the literature guided by a
structured framework. In the Seminar part of the course, Students will give an in-class presentation
(~15 min) of a paper related to innovation and technology economics that they will choose from a
list of references provided by the instructor.
Media & reading list
Presentation slides, Blackboard, hand-outs, Moodle course to provide materials (pdf of papers to
read)
Angrist, J.D. and J.-S. Pischke Mastering'metrics: The path from cause to effect, Princeton
University Press, 2014). Carter, M.R. "What farmers want: The “gustibus multiplier” and other
behavioral insights on agricultural development." Agricultural Economics, Vol. 47, (2016) pp. 85-96.
Conley, T.G. and C.R. Udry "Learning about a new technology: Pineapple in ghana." The American
Economic Review, (2010) pp. 35-69.
Duflo, E., M. Kremer and J. Robinson "Nudging farmers to use fertilizer: Theory and experimental
evidence from kenya." The American Economic Review, Vol. 101, (2011) pp. 2350-2390.
Feder, G., R.E. Just and D. Zilberman "Adoption of agricultural innovations in developing countries:
A survey." Economic development and cultural change, (1985) pp. 255-298.
Foster, A.D. and M.R. Rosenzweig "Microeconomics of technology adoption." Annual Review of
Economics, Vol. 2, (2010).
Griliches, Z. "Hybrid corn: An exploration in the economics of technological change."
Econometrica, Journal of the Econometric Society, (1957) pp. 501-522.
Karlan, D., R. Osei, I. Osei-Akoto and C. Udry "Agricultural decisions after relaxing credit and risk
constraints*." Quarterly journal of economics, Vol. 129, (2014).
Sauer, J. and D. Zilberman "Sequential technology implementation, network externalities, and risk:
The case of automatic milking systems." Agricultural Economics, Vol. 43, (2012) pp. 233-252.
Self, S. and R. Grabowski "Economic development and the role of agricultural technology."
Agricultural Economics, Vol. 36, (2007) pp. 395-404.
Sunding, D. and D. Zilberman "The agricultural innovation process: Research and technology
adoption in a changing agricultural sector." Handbook of agricultural economics, Vol. 1, (2001) pp.
207-261.
Suri, T. "Selection and comparative advantage in technology adoption." Econometrica, Vol. 79,
(2011) pp. 159-209.
Vrachioli, M., Stefanou, S.E. and Tzouvelekas, V. “Impact Evaluation of Alternative Irrigation
Technology in Crete: Correcting for Selectivity Bias.” Environ Resource Econ, Vol. 79, (2021) pp.
551–574. https://doi.org/10.1007/s10640-021-00572-y
Wuepper, D. and T. Lybbert "Perceived self-efficacy, poverty, and economic development." Annual
Review of Resource Economics, Vol. 9, (2017).
Wuepper, D., J. Sauer and L. Kleemann "Sustainable intensification amongst ghana’s pineapple
farmers: The complexity of an innovation determines the effectiveness of its training", Environment
and Development Economics: Online First, 2017).
The list will be expanded and updated using material from a variety of textbooks and journal
papers corresponding to each of the topics.
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