Problems of Innovation Management in the Agricultural Sphere

Abstract

The purpose of the paper is to justify an economic mechanism that stimulates the development of innovations in agriculture and related industries with a relative decrease in the budget financing for these purposes. The study is based on statistics on innovation, labor productivity, as well as on the results of economic analysis of the driving forces and factors of agricultural growth. As a result of the study, it was found that the key factors affecting the development of innovative processes in agriculture are the level of provision of organizations with financial resources, the level of motivation for innovation, the ability of organizations to create innovations or replicate the innovations already created. It was determined that the predominant part of innovations formed in agriculture is replicative, based on borrowing other people’s experience and knowledge. As recommendations, the expediency of regulating the ratio of basic prices for agricultural products and marginal prices for goods and services of related industries of the agro-industrial complex is justified. The introduction and maintenance of such ratios will reduce the need for agriculture in price subsidies and state subsidies, stimulate the development of competition. More than that, it will promote the development of competition and innovation processes throughout the agro-industrial complex, as well as increase the rate of growth of labor productivity.