Technology adoption in the vertical farming industry

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Chinese explanation / 中文解读

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Original abstract

Vertical farming has attracted substantial attention as a potential solution to land scarcity, climate volatility, and urban food supply challenges. Yet despite strong theoretical advantages and more than $10 billion in venture capital investment since 2015, many first-wave vertical farming companies have failed. This study examines how second-wave vertical farming firms that survived the industry downturn have adopted advanced technologies and how business considerations have shaped those decisions. Using a global survey of vertical farming companies combined with executive interviews and case studies, we analyze adoption across six technology domains: lighting, automation and robotics, sensing, artificial intelligence, water systems, and growing inputs. Our findings suggest a pattern of selective technology adoption driven primarily by return on investment and operational fit rather than technological sophistication. LED lighting and nutrient film hydroponic systems have become prevailing production standards, while high-cost automation, robotics, and AI show uneven adoption. Second-wave vertical farming companies emphasized pragmatic, modular technology strategies aligned with market demand, avoiding the capital-intensive technological investments that contributed to the failures of earlier venture-funded firms. By illuminating the business factors driving technology adoption, the study addresses a gap in the vertical farming literature.

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