Exploring firm-level classification of innovation behaviours in agricultural businesses: an input–output modes approach

Innovation in agriculture is widely acknowledged as an important contributor to productivity growth, sustainability and competitiveness in firms, particularly in developing economies where a lack of sufficient resources, market inefficiencies and infrastructural and structural barriers all present significant challenges (Adomako & Ampadu, 2015; Freeman, 2008; Lundvall, 2011; Schumpeter & Swedberg, 2021). Over the past few years, innovation in agriculture has been shown to be highly complex, often consisting of both knowledge-intensive and process-based activities, as well as incremental modifications of existing products and business processes (Dolata, 2009; Jensen et al., 2007; Tidd & Bessant, 2018). In this sector, the distinction between radical and incremental innovation (Schumpeter, 1934) is much more evident, given that agricultural businesses must navigate long innovation cycles, environmental unpredictability and capital-intensive investments (Rosenberg, 1982). Despite the critical importance of agriculture in developing countries, there remains a limited understanding of how agricultural firms innovate, particularly from the perspective of innovation modes. While existing studies have explored knowledge flows, institutional linkages and market access (Dolata, 2009), little attention has been given to innovation strategies employed by agricultural businesses—whether knowledge-driven, activity-driven or incremental—and how they shape their innovation outcomes.