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Economics of innovation in Australian agricultural economics and policy

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  • Potts, Jason
  • Kastelle, Tim

Abstract

One of the foundations of modern agricultural economics and policy is innovation economics, a theory that emphasises entrepreneurship and innovation. But innovation economics itself has been evolving, and a new approach centred on entrepreneurial market discovery has begun to separate from the classical innovation economics based on diagnoses of market failure in R&D investment. We argue that agricultural economics is still largely tied to the classical model, as are therefore its research programs and policy prescriptions. We furnish an overview of this new innovation literature that, among other things, better represents the complex aspects of risk management and niche competition in modern agricultural markets. This leads us to propose some new directions for the research program that emphasises a shift from market failure to collective action models of the innovation problem, and from government-led to industry-level solutions for industrial organisation in agriculture.

Suggested Citation

  • Potts, Jason & Kastelle, Tim, 2017. "Economics of innovation in Australian agricultural economics and policy," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 96-104.
    • Handle: RePEc:eee:ecanpo:v:54:y:2017:i:c:p:96-104
    DOI: 10.1016/j.eap.2017.03.003
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    2. Zhong Xie & Guixue Zang & Feifei Wu, 2019. "On the Relationship between Innovation Activity and Manufacturing Upgrading of Emerging Countries: Evidence from China," Sustainability, MDPI, vol. 11(5), pages 1-19, March.
    3. Fugeray-Scarbel, Aline & Irz, Xavier & Lemarié, Stéphane, 2023. "Innovation in forest tree genetics: A comparative economic analysis in the European context," Forest Policy and Economics, Elsevier, vol. 155(C).
    4. Abdol Majid Saadat Nezhad & Tahmoures Sohrabi & Nasrollah Shadnoosh & Abbas Toloie Eshlaghy, 2017. "A New Approach to Challenges of Venture Capital in Financing the Industrial Clusters through Cooperative Models and Venture Funds in Iran," International Journal of Economics and Financial Issues, Econjournals, vol. 7(6), pages 111-119.

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    More about this item

    Keywords

    Innovation; Entrepreneurship; Institutions; Agricultural economics;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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