Innovation adoption and farm profitability: what role for research and information sources?

Abstract

The paper analyses the determinants of farmers’ adoption of innovations and studies the effect of the source of information and the connection with agricultural research on the contribution of innovation to farm performance. The paper uses primary data collected ad hoc in the Province of Bologna (Emilia-Romagna, Italy) and analyses it through an econometric analysis. The results indicate that structural factors and farm specialisation still play a relevant role in innovation adoption. Connection to scientific research triggers significant improvements in terms of value-added and quality of production but does not affect other profitability-related parameters. The results confirm the need for policy to better consider the role of intermediate actors between research and the farmer as well as to better clarify the final performance strategy in order to set the policy instruments right. The paper also highlights the need for further research about farms’ proactivity in searching for and selecting information during the process of innovation adoption and competitive advantages in terms of profitability components.