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Agricultural Bio-Inputs as an Innovative Area of Opportunity for Agro-Industrial Growth in Developing Countries: Lessons from Argentina

Author

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  • Gabriel da Silva Medina

    (Faculty of Agronomy and Veterinary Medicine, University of Brasília, Brasilia 70910-900, Brazil)

  • Rosana Rotondo

    (Faculty of Agricultural Sciences, National University of Rosario, Rosario S2125ZAA, Argentina)

  • Gustavo Rubén Rodríguez

    (Faculty of Agricultural Sciences, National University of Rosario, Rosario S2125ZAA, Argentina)

Abstract

Technology-based innovations in the bio-economy are expected to provide new market opportunities for agro-industrial growth in developing countries. This study explores how domestic entrepreneurs have been benefiting from the growing global demand for sustainable agribusiness by establishing themselves in the agricultural bio-inputs sector. Aiming to explore how developing countries can build agro-industrial capabilities that go beyond farming, a case study was conducted in Argentina giving the country’s large domestic market for agricultural inputs. The assessment was based on official data and a survey conducted with a sample of 14 Argentinean companies. Results revealed a growing number of domestic companies in the bio-inputs market, which accounted for 74% of the total number of companies by 2022. Contextual aspects that favored domestic players include private investments by local entrepreneurs, the use of locally available technologies, support from public innovation centers and assertive market strategies. Principal component analysis revealed different business models, which include companies focusing on the development of new products, companies with professional industrial plants for large-scale production and companies with a strong marketing component reaching out to farmers. The global growth of sustainable bio-based agricultural production offers areas of opportunities for domestic investments in cleaner agro-industrial sectors that go beyond the primary production of commodities and can build industrial capabilities in developing countries.

Suggested Citation

  • Gabriel da Silva Medina & Rosana Rotondo & Gustavo Rubén Rodríguez, 2023. "Agricultural Bio-Inputs as an Innovative Area of Opportunity for Agro-Industrial Growth in Developing Countries: Lessons from Argentina," World, MDPI, vol. 4(4), pages 1-17, October.
    • Handle: RePEc:gam:jworld:v:4:y:2023:i:4:p:45-725:d:1270658
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    References listed on IDEAS

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    1. Viviana Leonardi & Irene García Casal & Gabriela Cristiano, 2009. "Desempeño innovador de un grupo de Mipymes agroindustriales argentinas," Economia y Sociedad., Universidad Michoacana de San Nicolas de Hidalgo, Facultad de Economia, issue 23, pages 45-64, Enero-Jun.
    2. Marcelo Sili & Jochen Dürr, 2022. "Bioeconomic Entrepreneurship and Key Factors of Development: Lessons from Argentina," Sustainability, MDPI, vol. 14(4), pages 1-28, February.
    3. Wang, Cong & Lu, Yifan, 2020. "Can economic structural change and transition explain cross-country differences in innovative activity?," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
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