The Conflict Over 'Innovation Rents' of Soybean Seeds in Argentina

A Critical Analysis in Light of Capital Subsystems Theory

Abstract

The rapid expansion of soybean production in Argentina coincided with the widespread adoption of Monsanto’s “technological package,” consisting of its Roundup herbicide and its resistant seeds (RR soybeans). As an autogamous plant—where offspring reproduce the useful traits of their parents—it has been highly challenging for the company to appropriate the innovation rents associated with this product. This situation led to various strategies, notably the attempt to establish a form of sub- or supra-state oversight system through the licensing of INTACTA Technology usage.

The aim of this article is to place this issue in a historical perspective, revisiting the literature that, since the early 21st century, has drawn on the theory of capital subsystems to interpret the structural transformations in global agricultural production. This body of work will be examined in dialogue with recent research into the specific case of transgenic soybeans in Argentina and the conflict over innovation rents. This exercise will allow us to offer theoretical insights into the nature of the conflicts of the past decade between farmers, local seed companies, and one of the leading multinational biotechnology corporations.