Innovation, Agricultural Productivity and Sustainability in China

image of Innovation, Agricultural Productivity and Sustainability in China

The expansion of agricultural production in China has been remarkable, but at the expense of the sustainable use of its natural resources. To counter this, as well as to face problems due to rising labour costs and a rapidly ageing rural population, agricultural production must concentrate on a smaller number of more productive farms. It is in this light that this report reviews recent policy developments to assess whether they have been conducive to productivity growth and environmental sustainability. It finds that the conditions for structural change and innovation at the farm level in China could be further improved by securing the long-term stability of land rights as well as reducing transaction costs. Greater policy coherence with agri-environmental policy objectives could also be achieved through stricter enforcement of environmental regulations. Finally, the agricultural innovation system could play a greater role by placing the focus on public agricultural R&D in areas such as the environment and resource conservation, and in other areas which do not attract much private sector investment.



The agricultural innovation system in China

This chapter describes the Agricultural Innovation System in China and outlines the recent changes it has undergone. It first provides an overview of the general innovation system; presents agricultural innovation actors and their roles in the system; outlines changes in roles and themes of R&D; and presents the main policy instruments and monitoring efforts. It also reviews the main trends in public and private investments in R&D, the funding mechanism and the means used to foster knowledge markets and networks. This is followed by an overview of policy incentives for the adoption of agriculture innovation, with an emphasis on the role of training and advisory services at farm level.




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