Induced Innovation and Agricultural Development
In the book, Agricultural Development: An International Perspective, Ruttan and Hayami outline their hypothesis as follows:
"The model attempts to make more explicit the process by which technical and instititutional changes are induced through the responses of farmers, agribusiness entrepreneurs, scientists, and public administrators to resource endowments and to changes in the supply and demand of factors and products. The state of relative endowments and accumulation of the two primary resources, land and labor, is a critical element in determining a viable patterns of technical change in agriculture. Agriculture is characterized by much stronger constraints of land on production than most other sectors of the economy. Agricultural growth may be viewed as a process of easing the constraints on production imposed by inelastic supplies of land and labor. Depending on the relative scarcity of land and labor, technical change embodied in new and more productive inputs may be induced primarily either (a) to save labor or (b) to save land." (Hayami and Ruttan, 2nd ed., p. 4).
Read more about this topic: Vernon Wesley Ruttan
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