Background
AgTech, an economic sector devoted to innovation in food and agriculture, has been around formally since biotechnology and seed genetics entered the market in the mid 90s, but only since 2013 has the sector seen rapid growth with new technology in big data, robotics, indoor agriculture, and more (Leclerc et al. 2015). This is reflected in a 75% growth in investment in 2013 and a 170% increase in 2014 (“Agriculture” 2014). However, along with the increase in the private sector, publicly funded agricultural research is declining (Nesheim 2015). AgTech is also a global trend with the most popular countries for investment, ranked, being United States, Israel, India, and China (Burwood-Taylor 2016). While this rapid private sector growth is exciting, what startups are benefitting the most? Are private sector innovations having more of an impact? Can success be measured through investment, revenue, media attention and/or use in farms? And is this resulting in any tangible changes in Agricultural practices?
The reasons for this increase in investment and interest are varied. One commonly cited reason is the growing concern for producing enough food as the world population continues to grow (Dutia 2014). There is also concern that high energy, low efficiency foods, such as most meats, are becoming more popular (Dutia 2014). This argument points to the green revolution as one example of how technology changed food production forever, and it calls for another technological revolution in a similar vein. While this argument stays with the boundaries of limits to growth and neo-malthusianism, others point to more complex issues of sustainable development in the face of climate change and efficient use of resources as reasons to invest in AgTech (Dutia 2014). Another popular reason to invest in AgTech is because of its economic potential. This is seen in the growing private sector AgTech market; it is gaining in popularity (Leclerc et al. 2015). Technology also holds the promise of making food easier and cheaper to produce, providing an economic benefit for everyone, at least within a capitalist society (Nesheim et al. 2015). This leads to ask, to what extent does the purpose or mission of a company effect how successful they are?
However, critics to AgTech point to increased pollution and infrastructural waste destroying the fertility of the soil and surrounding environment (Nesheim et al. 2015). There are also increased hazards and learning curves for laborers as drawbacks to agricultural technologies (Nesheim et al. 2015). Critics to private investment of AgTech also cite that academic research and development often leads to more influential innovations (Dutia 2014). Startups may not be the best way to incite change.
Research Question
To what extent does the economic incentive for profit enable or hinder AgTech’s ability to enhance food production?
Methods
- Market Research for highest earning American AgTech startups
- Detailed analysis of mission or social angle of company, private vs public sector, type of technology offered, location, type of farms targeted, size of company, investment, revenue, marketing, and other relevant variables
- Focus on American startups as US has the most investment, and the firms will be most easily accessible
- Focus on technologies created for industrial agricultural use, rather than personal or consumer tech, as these generally affect more people
- Statistical Analysis – are there significant relationships between listed variables? i.e. is there a relationship between social angle of company and initial investment? Or size of company and technology offered?
- Social network analysis of AgTech startups and market variables – a visual representation of relationships between startups, and variables (i.e. mission of company, revenue, etc.)
- Interviews with founders of high earning AgTech startups and academic researchers. Ideally around 10 with firms and scholars that stood out in market research.
- Explore what they think led to their success – how they have seen their technology applied
Resources
“Agriculture & Food.” 2014. I3 Quarterly Innovation Monitor. I3. http://www.cleantech.com/wp-content/uploads/2015/02/i3QIM_AgricultureFood_4Q14.pdf.
Burwood-Taylor, Louisa, Rob Leclerc, and Melissa Tilney. 2016. “AgFunder – Agriculture & AgTech Industry Reports.” AgFunder. https://agfunder.com/research/agtech-investing-report-2015.
Dutia, Suren G. 2014. “AgTech: Challenges and Opportunities for Sustainable Growth.” Innovations: Technology, Governance, Globalization 9 (1-2): 161–93. doi:10.1162/inov_a_00208.
Leclerc, Rob, and Melissa Tilney. 2015. “AgTech Is The New Queen Of Green.” TechCrunch. Accessed September 28. http://social.techcrunch.com/2015/04/01/the-new-queen-of-green/.
Nesheim, Malden C., Maria Oria, Peggy Tsai Yih, Environmental Committee on a Framework for Assessing the Health, Food and Nutrition Board, Board on Agriculture and Natural Resources, Institute of Medicine, and National Research Council. 2015. “Overview of the U.S. Food System.” In A Framework for Assessing Effects of the Food System. The National Academic Press.