Can foods produced with new plant engineering techniques succeed in the marketplace? A case study of apples

We present a model for research and development (R&D) investment in food innovations based on new plant engineering techniques (NPETs) and traditional hybridization methods. The framework combines uncertain and costly food innovation with consumers' willingness to pay (WTP) for the new food. The framework is applied with elicited WTP of French and US consumers for new improved apples. NPETs may be socially beneficial under full information and when the probability of success under NPETs is relatively high. Otherwise, the traditional hybridization is socially optimal. A probable collapse of conventional apples raises the social desirability of new apples generated by NPETs and traditional hybridization.

Automated summary

This article presents a model for R&D investment in food innovations using new plant engineering techniques and traditional hybridization methods. The model considers the uncertainty and cost of food innovation as well as consumers' willingness to pay. The study applied the model to assess French and US consumers' willingness to pay for improved apples. The results show that NPETs may be socially beneficial when the success probability is high, otherwise traditional hybridization is preferred. The potential collapse of conventional apples enhances the social desirability of new apples generated by NPETs and traditional hybridization.