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Fostering Productivity and Competitiveness in Agriculture

image of Fostering Productivity and Competitiveness in Agriculture

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.

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Context and issues

This chapter outlines the importance of productivity growth for the sustained competitiveness of the agri-food sector and the role of agricultural research and development in fostering the innovations conducive to higher productivity growth. It briefly describes the content of the report and raises the main questions it attempts to respond to.

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