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Innovation and performance – evidence at micro level

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  • Johannes Sauer
  • Hans Vrolijk

Abstract

This empirical study aims to shed light on the link between innovation and economic performance at micro level. Based on a comprehensive survey among dairy and crop farms in the Netherlands we estimate a structural multi-stage model to deliver evidence on the effect of engagement and investment in innovation on the production of product, process and organizational or marketing innovations as well as on the effect of such innovations on farm level productivity. The results suggest various market and farm behaviour related factors to stimulate an increase in innovation engagement and production. Furthermore, the study reveals that indeed a greater innovation investment per unit (innovation input) leads to a higher probability of producing at least one successful product, process and/or organizational or marketing innovation (innovation output). The production of process and organizational or marketing related innovation leads to significant productivity gains. Various recommendations towards a more effective and efficient innovation policy are finally given.

Suggested Citation

  • Johannes Sauer & Hans Vrolijk, 2019. "Innovation and performance – evidence at micro level," Applied Economics, Taylor & Francis Journals, vol. 51(43), pages 4673-4699, September.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4673-4699
    DOI: 10.1080/00036846.2019.1597252
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    Cited by:

    1. Hans Vrolijk & Krijn Poppe, 2021. "Cost of Extending the Farm Accountancy Data Network to the Farm Sustainability Data Network: Empirical Evidence," Sustainability, MDPI, vol. 13(15), pages 1-13, July.
    2. Margherita Masi & Marcello Rosa & Yari Vecchio & Luca Bartoli & Felice Adinolfi, 2022. "The long way to innovation adoption: insights from precision agriculture," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-17, December.

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