D1.8 - Innovation in the EU Agro-Food Sector

In recent decades, innovation has emerged as a fundamental engine of economic, environmental, and social transformation. Confronted with escalating global challenges—including climate change, deepening socio-economic disparities, and intensifying global competition—there is a growing consensus that current models of production, consumption, and societal organization must undergo a profound and systemic shift. Innovation, particularly when directed towards sustainability, holds the potential to drive this transition by fostering more inclusive, resilient, and environmentally sustainable economies (Carrillo-Hermosilla et al., 2009). This builds upon the historical and theoretical foundations that established innovation and technological progress as pivotal forces of long-term economic growth. Contemporary literature has since reaffirmed and expanded these insights, emphasizing innovation’s role not only in macroeconomic development but also in enhancing efficiency and value generation on a global scale (Musostova et al., 2023; Yue et al., 2025).The agri-food sector stands out as one of the most strategically critical domains in which innovation is urgently needed. Faced with the dual challenge of feeding a growing global population and mitigating the adverse effects of climate change and land degradation, innovation in agriculture has become a top policy priority at both the European Union (EU) and United Nations (UN) levels (Finger, 2023; Barth et al., 2017). Technological, organizational, and digital innovations—from precision agriculture and bio-based fertilizers to traceability platforms and circular economy models—have the potential to revolutionize the food system. Yet, realizing this transformation requires supportive public policies, substantial investment in Research and Development, and robust systems for knowledge transfer and capacity-building (Bentivoglio et al., 2016; Latino et al., 2023; Reinhardt, 2023).Within this broader innovation framework, eco-innovation has gained particular prominence. Defined as innovation that explicitly integrates environmental objectives—enhancing resource efficiency, reducing ecological impact, and promoting sustainable consumption and production patterns—eco-innovation serves as a vital tool for harmonizing economic development with environmental stewardship (Porter, 1991; Bossle et al., 2016). To monitor progress and inform policy in this area, the European Commission has developed several key indicators and benchmarking tools, notably the European Innovation Scoreboard (EIS), Regional Innovation Scoreboard (RIS), and the Eco-Innovation Index (EII). These instruments provide critical data on innovation inputs, activities, and outcomes at both national and regional levels, supporting a place-based policy approach and helping to identify systemic gaps (EC, 2023; EC, 2024)The deliverable is structured as follows.First, a systematic literature review is developed on drivers and barriers to innovation in the agrifood sector. Afterwards, a descriptive analysis is conducted for the main innovation indexes at EU level, followed by the main self-produced maps and graphs representing their distribution in the European Union, as well as their evolution in time, and a comment on their main potential meanings and interpretations. The analysis will start with the European Innovation Scoreboard (EIS), followed by the Regional Innovation Scoreboard (RIS) and finally the Eco-Innovation Index (EII). Then, an empirical assessment is developed in the form of an econometric model assessing the effect of public investment on innovation, here represented by patents creation at regional level. Finally, the study will provide a micro-economic assessment using firms as units of analysis. All of the above is conducted at EU level, at national and regional (Nuts2) level, with a focus on the four member states that serve as main case studies for the SOSfood Project (Italy, Spain, Greece and Lithuania).