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Innovative capacity and productivity: an empirical analysis of Australian grain growers

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  • Nossal, Katarina

Abstract

Slowing productivity growth in the Australian grains industry has led to calls for increasing investment in rural R&D to advance agricultural technology. However, recent research also suggests there is strong potential to increase productivity by enhancing uptake of existing innovations. The productivity gains from innovation adoption are likely to depend on the capacity of farmers to effectively select, adapt and integrate innovations into existing farming systems. In this paper, the innovative capacity of grain growers is characterised by variables related to the farm, the farmer and their operating environment. The influence of these factors on on-­‐farm innovation adoption is tested using an ordered probit model. The relationship between innovative capacity, innovation adoption and productivity is then evaluated. The results suggest that building innovative capacity is effective in increasing agricultural productivity.

Suggested Citation

  • Nossal, Katarina, 2012. "Innovative capacity and productivity: an empirical analysis of Australian grain growers," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124353, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare12:124353
    DOI: 10.22004/ag.econ.124353
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    References listed on IDEAS

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    1. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
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    3. Paul Diederen & Hans van Meijl & Arjan Wolters, 2003. "Modernisation in agriculture: what makes a farmer adopt an innovation?," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 2(3/4), pages 328-342.
    4. Sunding, David & Zilberman, David, 2001. "The agricultural innovation process: Research and technology adoption in a changing agricultural sector," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 4, pages 207-261, Elsevier.
    5. Paul Diederen & Hans Van Meijl & Arjan Wolters & Katarzyna Bijak, 2003. "Innovation adoption in agriculture : innovators, early adopters and laggards," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 67, pages 29-50.
    6. Hughes, Neal & Lawson, Kenton & Davidson, Alistair & Jackson, Tom & Sheng, Yu, 2011. "Productivity pathways: climate-adjusted production frontiers for the Australian broadacre cropping industry," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100563, Australian Agricultural and Resource Economics Society.
    7. D'Emden, Francis H. & Llewellyn, Rick S. & Burton, Michael P., 2008. "Factors influencing adoption of conservation tillage in Australian cropping regions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-14.
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    Cited by:

    1. Williams, John & McSweeney, Peter & Salmon, Robert, 2014. "Australian Farm Investment: Domestic and Overseas Issues," Papers 234408, University of Melbourne, Melbourne School of Land and Environment.

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    Crop Production/Industries; Productivity Analysis;

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