IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/364709.html
   My bibliography  Save this article

Innovation in Agriculture: Driving Economic Development through EU Knowledge-Based Economy

Author

Listed:
  • Zarkua, Tatia
  • Heijman, Wim
  • Benešová, Irena

Abstract

Innovation in agriculture is vital for enhancing sustainability, productivity, and economic development, especially in light of global challenges such as population growth, resource scarcity, and climate change. This study, adopting a quantitative cross-sectional approach, investigates the relationship between agricultural innovation and productivity within the EU. By employing multiple regression analysis with a log-log transformation, the study explores how R&D expenditure in agriculture and various control variables impact agricultural productivity across EU-27 countries from 2000 to 2019. To address potential endogeneity concerns, the Instrumental Variables (IV) approach was applied, using the Two-Stage Least Squares (2SLS) method, which reduced bias in the estimation. The results revealed that a 1 % increase in R&D spending in agriculture corresponds to an approximate 0.33% increase in total crop output, indicating a strong positive link between innovation and agricultural productivity. The model residuals confirm a satisfactory fit, highlighting the robustness of the findings. This study provides valuable insights into how agricultural innovation can drive productivity, offering important implications for policymakers and researchers aiming to optimise agricultural output through increased investment in innovation.

Suggested Citation

  • Zarkua, Tatia & Heijman, Wim & Benešová, Irena, . "Innovation in Agriculture: Driving Economic Development through EU Knowledge-Based Economy," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 17(2).
    • Handle: RePEc:ags:aolpei:364709
    DOI: 10.22004/ag.econ.364709
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/364709/files/661_agris-on-line-2-2025-zarkua-heijman-benesova.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.364709?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marian Rizov & Jan Pokrivcak & Pavel Ciaian, 2013. "CAP Subsidies and Productivity of the EU Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 537-557, September.
    2. Wolfert, Sjaak & Ge, Lan & Verdouw, Cor & Bogaardt, Marc-Jeroen, 2017. "Big Data in Smart Farming – A review," Agricultural Systems, Elsevier, vol. 153(C), pages 69-80.
    3. Bengt-Åke Lundvall, 2007. "National Innovation Systems—Analytical Concept and Development Tool," Industry and Innovation, Taylor & Francis Journals, vol. 14(1), pages 95-119.
    4. Adam M. Komarek & Siwa Msangi, 2019. "Effect of changes in population density and crop productivity on farm households in Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 50(5), pages 615-628, September.
    5. Matin Qaim, 2009. "The Economics of Genetically Modified Crops," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 665-694, September.
    6. J. Špička & J. Boudný & B. Janotová, 2009. "The role of subsidies in managing the operating risk of agricultural enterprises," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 55(4), pages 169-180.
    7. Ricker-Gilbert, Jacob & Jumbe, Charles & Chamberlin, Jordan, 2014. "How does population density influence agricultural intensification and productivity? Evidence from Malawi," Food Policy, Elsevier, vol. 48(C), pages 114-128.
    8. Jerry Hausman, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    9. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    10. Josephson, Anna Leigh & Ricker-Gilbert, Jacob & Florax, Raymond J.G.M., 2014. "How does population density influence agricultural intensification and productivity? Evidence from Ethiopia," Food Policy, Elsevier, vol. 48(C), pages 142-152.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abay, Kibrewossen & Hirvonen, Kalle & Minten, Bart, 2017. "Farm size, food security, and welfare: Descriptive evidence from the Ethiopian highlands," ESSP working papers 111, International Food Policy Research Institute (IFPRI).
    2. Maryia Bakhtsiyarava & Kathryn Grace, 2021. "Agricultural production diversity and child nutrition in Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1407-1422, December.
    3. Alexander Darío Bastidas Marulanda, 2020. "La producción agropecuaria de Antioquia: un índice de los municipios agropecuarios," Ensayos de Economía 18311, Universidad Nacional de Colombia Sede Medellín.
    4. Marcos-Martinez, Raymundo & Measham, Thomas G. & Fleming-Muñoz, David A., 2019. "Economic impacts of early unconventional gas mining: Lessons from the coal seam gas industry in New South Wales, Australia," Energy Policy, Elsevier, vol. 125(C), pages 338-346.
    5. Benson, Todd & Mabiso, Athur & Nankhuni, Flora, "undated". "DETAILED CROP SUITABILITY MAPS AND AN AGRICULTURAL ZONATION SCHEME FOR MALAWI Spatial information for agricultural planning purposes," Feed the Future Innovation Lab for Food Security Policy Research Papers 259052, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    6. Cui, Dan & Wei, Xiang & Wu, Dianting & Cui, Nana & Nijkamp, Peter, 2019. "Leisure time and labor productivity: A new economic view rooted from sociological perspective," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-24.
    7. Abebaw Andarge Gedefaw & Clement Atzberger & Walter Seher & Reinfried Mansberger, 2019. "Farmers Willingness to Participate In Voluntary Land Consolidation in Gozamin District, Ethiopia," Land, MDPI, vol. 8(10), pages 1-21, October.
    8. Meinzen-Dick, Laura & Zavale, Helder, 2025. "Gender and tenure insecurity in a matrilineal customary system," Land Use Policy, Elsevier, vol. 157(C).
    9. Takada, Jun & Shuto, Hisato, 2023. "Causal linkages between land reform and factor demand under tenure insecurity: Evidence from Amhara Region, Ethiopia," Land Use Policy, Elsevier, vol. 128(C).
    10. Nancy McCarthy & Talip Kilic & Alejandro de la Fuente & Joshua M. Brubaker, 2018. "Shelter from the Storm? Household-Level Impacts of, and Responses to, the 2015 Floods in Malawi," Economics of Disasters and Climate Change, Springer, vol. 2(3), pages 237-258, October.
    11. Sarah Ephrida Tione, 2020. "Agricultural Resources and Trade Strategies: Response to Falling Land-to-Labor Ratios in Malawi," Land, MDPI, vol. 9(12), pages 1-32, December.
    12. Huang, Junbing & Du, Dan & Tao, Qizhi, 2017. "An analysis of technological factors and energy intensity in China," Energy Policy, Elsevier, vol. 109(C), pages 1-9.
    13. Mugizi, Francisco M.P. & Matsumoto, Tomoya, 2021. "A curse or a blessing? Population pressure and soil quality in Sub-Saharan Africa: Evidence from rural Uganda," Ecological Economics, Elsevier, vol. 179(C).
    14. Nazaire Houssou & Michael Johnson & Shashidhara Kolavalli & Collins Asante-Addo, 2018. "Changes in Ghanaian farming systems: stagnation or a quiet transformation?," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(1), pages 41-66, March.
    15. Desiere, Sam & D'Haese, Marijke, 2015. "Boserup versus Malthis: does population pressure drive agricultural intensification? Evidence from Burundi," 2015 Conference, August 9-14, 2015, Milan, Italy 211571, International Association of Agricultural Economists.
    16. Vandercasteelen, Joachim & Beyene, Seneshaw Tambru & Minten, Bart & Swinnen, Johan, 2018. "Big cities, small towns, and poor farmers: Evidence from Ethiopia," World Development, Elsevier, vol. 106(C), pages 393-406.
    17. Kopper, Sarah A., "undated". "Agricultural labor markets and fertilizer demand: Intensification is not a single factor problem for non-separable households," 2018 Annual Meeting, August 5-7, Washington, D.C. 274184, Agricultural and Applied Economics Association.
    18. Sanglestsawai, Santi & Rejesus, Roderick M. & Yorobe, Jose M., 2014. "Do lower yielding farmers benefit from Bt corn? Evidence from instrumental variable quantile regressions," Food Policy, Elsevier, vol. 44(C), pages 285-296.
    19. Proksch, Dorian & Busch-Casler, Julia & Haberstroh, Marcus Max & Pinkwart, Andreas, 2019. "National health innovation systems: Clustering the OECD countries by innovative output in healthcare using a multi indicator approach," Research Policy, Elsevier, vol. 48(1), pages 169-179.
    20. Mccarthy,Nancy & Kilic,Talip & Brubaker,Joshua Milton & De La Fuente,Alejandro & Murray,Siobhan, 2021. "Recurrent Climatic Shocks and Humanitarian Aid : Impacts on Livelihood Outcomes in Malawi," Policy Research Working Paper Series 9666, The World Bank.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:364709. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fevszcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.