Drivers and Barriers to Innovation Adoption in the EU Agro‐Food Sector: A Structured Literature Review of Firms and Farms

ABSTRACT Innovation adoption in the agro‐food sector is essential for enhancing productivity, sustainability, and maintaining competitiveness in the European Union. Both firms and farms in this sector face a complex landscape of drivers and barriers that influence their ability to adopt new technologies and practices. The paper employs a structured literature review approach to analyze existing studies on this topic. Focusing on separate analyses for farms and firms, our investigation began with a selection of 165 studies. After excluding book chapters, books, and conference papers, and including only those pertinent to member states, we reviewed abstracts to narrow our selection to a total of 56 papers. Several findings have emerged from this analysis. Public funding is a major driver, providing essential financial support, though it can be less accessible for micro and small to medium enterprises. Knowledge spillovers and collaboration along the supply chain are crucial for disseminating innovative practices. The role of the Internet of Things is increasingly significant, offering solutions for supply chain management. Investments in research and development are pivotal for technological advancements. Differences exist between the innovation drivers and barriers for farms and firms, indicating the need for tailored approaches to support innovation across the sector.