The chapter reviews the generation and adoption of new technologies in the agricultural sector. The first section describes models of induced innovation and experimentation, considers the political economy of public investments in agricultural research, and addresses institutions and public policies for managing innovation activity. The second section reviews the economics of technology adoption in agriculture. Threshold models, diffusion models, and the influence of risk, uncertainty, and dynamic factors on adoption are considered. The section also describes the influence of institutions and government interventions on adoption. The third section outlines future research and policy challenges.