Eco‐Innovation: Drivers and Obstacles for Agriculture Firms in a Developing Country

ABSTRACT Sustainable agriculture is becoming increasingly vital for food security and economic growth, particularly as the agricultural sector grapples with challenges posed by climate change. This study, grounded in the environmental innovation theory, resource‐based view, and dynamic capabilities approach, uses logistic and multinomial logistic regression models to evaluate the eco‐innovation behavior of agricultural firms in Chile. We focus on the impact of technology push, market pull, regulatory push or pull, and firm‐specific factors on eco‐innovations. Our key findings reveal that cost savings, market factors, non‐R&D through external knowledge acquisition, cooperation with other agricultural firms, and firm size are the most significant drivers of eco‐innovation in this context. Our results diverge from typical findings in the literature regarding the influence of regulatory push/pull factors, as we observed no significant effects of these variables. This study contributes to the understanding of eco‐innovation drivers in agriculture, an understudied sector in developing countries. This study provides crucial insights for policymakers and industry stakeholders who aim to enhance sustainability practices in response to global environmental challenges.