OECD Food, Agriculture and Fisheries Papers

NB. No. 1 to No. 58 were released under the previous series title OECD Food, Agriculture and Fisheries Working Papers.


Estimating the link between farm productivity and innovation in the Netherlands

This report investigates the link between farm innovation and economic performance. The study uses a unique survey dataset maintained by Wageningen Economic Research in the Netherlands. A structural multi-stage model of firm-level innovation is applied. The model contains four steps: first, the decision of the farmer to innovate at all; second the innovation intensity, measured by expenditures on innovation activities; third the output of the innovation process, which is measured by realized product, process, organisational or marketing-related innovation; fourth, productivity changes as a result of innovation. The analysis is performed for two types of farms – dairy and crop farms – and covers the period from 2004 to 2014. A number of factors are found to be decisive for the magnitude and success of farm innovations in the Netherlands. Among them regulations and standards, the level of co-operation with knowledge producing institutions, own product and process-related development activities, farm size, the age of the farm operator as well as confidence in business and sector developments. Based on these and other results, the report derives implications for policies aimed at promoting farm innovation and productivity and sustainability in the agricultural sector.


Keywords: Dutch farms, productivity, agriculture, Innovation
JEL: Q16: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / R&D; Agricultural Technology; Biofuels; Agricultural Extension Services; Q12: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets; O31: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Innovation and Invention: Processes and Incentives
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