Market innovation and investment are key elements contributing to the health and success of any industry. However, U.S. cattle and beef interests appear to be resisting some of the market innovations that are occurring in their industry. This includes resisting innovations designed to provide more information and transparency in the marketing chain, such as additional traceability provided by animal identification systems. This paper discusses how institutions supporting the U.S. cattle and beef industry may be failing the industry in terms of helping it adjust to new market conditions, including failing to help the industry foster market innovation. Recommendations are given relating to the first steps of government and the land-grant system can take to change research and extension agendas relating to the beef industry.