Evaluating the demand for innovation among small agricultural business

Abstract

Subject. Agricultural business cannot evolve successfully without innovation used in their operations. The low demand for marketing, corporate and environmental innovations stem from the underdevelopment of the innovative environment and infrastructure of regional agriculture, in particular. Objectives. We analyze the use of innovation in agriculture, evaluate the demand for various types of innovation among small agricultural businesses. Methods. The study relies upon such methods as monograph, abstraction logic analysis, analysis and synthesis, economic analysis, economic-statistical analysis. The statistical framework is based on official statistics of the Federal State Statistics Service. Results. The article points out the most promising types of marketing, organizational and administrative, environmental innovation. If they are capable of allowing for the implementation of organizational and administrative innovation, such entities are found to derive additional effects from new technology. It is hard for small and medium-sized agricultural businesses to implement innovation on their own. Thus, they can raise their performance by cooperating with large businesses. The article shows how small and large businesses may cooperate to master innovation. Conclusions and Relevance. Igniting the innovative activity of small agricultural businesses becomes a key to the food independence and security of the country. Innovation can be used more broadly if there is an appropriate innovative environment, which requires to improve the regulatory framework and refine the innovation encouragement mechanisms, incentives, stronger and deeper integration of agricultural science and production. There should be provisions of the agricultural policy, which would help various innovations permeate production processes of small agricultural businesses.