Public policy for managing invasive species has largely focused on preventive measures prior to detection (stage 1) and on the use of chemical/mechanical or biological control measures after the establishment and dispersion of the invasive species (stage 2). Optimal management policy depends both on the initial stock of the invasive species and on the costs associated with conventional control measures. However, little attention has focused on how an induced technology such as Bt corn and Bt cotton is developed and adopted by farmers (stage 3), or how it affects the manageability of economic and ecological damages from an invasive species. This analysis evaluates the optimal allocation of management resources between preventive and control measures for invasive species by incorporating induced technology under uncertainty into a conventional dynamic model of invasive species management.