Transforming the agri‐food sector through eco‐innovation: A path to sustainability and technological progress

Abstract The rapid transformation in the way people live has become a concern for countries around the world. Innovation can offer a strategy to address sustainable development challenges in all areas of society. Traditionally, the agri‐food sector has had low levels of innovation and research and development (R&D). Despite its negative environmental effects, its value for society is unquestionable. Therefore, the agri‐food sector must not lag behind other sectors in embracing the technological progress that contributes to sustainable development. The scientific literature contains studies of eco‐innovation drivers and barriers. Nevertheless, research on low‐technology sectors such as the agri‐food sector is scarce. To address this research gap, this paper identifies the internal and external factors that are necessary for in‐firm eco‐innovation and whose absence can constrain or block eco‐innovation development. Data were gathered from Spanish agriculture and industrial agri‐food firms in 2022 based on primary statistical information collected in a 2022 survey to obtain data on their activity in the period 2017–2021. Necessary condition analysis (NCA) reveals three main findings: (i) internal factors are more relevant than external factors, (ii) the type of firm and the degree of eco‐innovation development affect the importance of internal and external factors, and (iii) agricultural and industrial agri‐food firms prioritize different stages of eco‐innovation development because of the higher complexity and technological progress of industrial firms. These results highlight eco‐innovation as a key strategy to enhance the competitiveness and sustainability of the sector. By prioritizing internal factors and fostering eco‐innovation through environmental training, green relationships, and support networks, companies can progress toward more sustainable and technologically advanced practices, thus contributing to the overall sustainable development of the sector. This underscores the importance of policies that promote training, investment in R&D, environmental and fiscal regulation, and collaboration to drive eco‐innovation and sustainability in the agri‐food sector.