This report reviews economic concepts of innovation, research and development (R&D), productivity and competitiveness, and their linkages. It then discusses evidence on developments in productivity and competitiveness in the agricultural and food processing sectors and on the relationship between agricultural productivity and farm size, factor intensity, farm specialisation, human capital, consumer demand, the natural environment, investments in general infrastructures and R&D, regulations, and agricultural policies. It describes developments in public and private investments in agricultural R&D and outlines their positive impact on productivity growth. Finally, it suggests an “innovation systems” approach would help understand better how innovation translates into productivity growth.
Table of contents:
Chapter 1. Context and issues Chapter 2. Understanding agricultural competitiveness and productivity -Competitiveness -Measuring productivity and its components -Total factor productivity -Productivity and efficiency -Innovation Chapter 3. The evidence on agricultural productivity growth and competitiveness -Main developments in agricultural productivity reported in the literature -Decomposition of productivity changes -Developments in partial productivity measures -Evidence on competitiveness in agriculture and the agro-food sector based on measures other than productivity Chapter 4. Developments in public and private research and development efforts -Trends in public expenditure on agricultural R&D -Private expenditure for agricultural R&D Chapter 5. Determinants of productivity growth and competitiveness -Review of the impact of possible determinants -The impact of research and development on productivity growth and its economic benefits Chapter 6. Towards an innovation systems approach Annex A. Summary of evidence on productivity and competitiveness in the agri-food sector