A methodical approach to assessing the potential of innovative development of agricultural business subjects

• Published in: Innovation and Sustainability pp. 128 - 134
• Main Author: SIEROV, Ivan
• Format: Journal Article
• Language: English
• Published: 27.09.2024
• ISSN: 2786-5940; 2786-5959
• DOI: 10.31649/ins.2024.3.128.134

The article presents a methodological approach to assessing the innovation development potential of agribusiness entities, which is a crucial stage in enhancing the competitiveness and efficiency of enterprises in the face of global challenges. The proposed approach allows for a comprehensive evaluation of both internal and external factors influencing the innovation activity of enterprises. Key components of the assessment include financial capacity, technological readiness, innovation climate, and market opportunities. It is highlighted that insufficient support for innovation at the corporate culture level, as well as a low proportion of innovation-active enterprises, act as restraining factors for development in the agricultural sector. Additionally, the article underlines the need for increased investments in innovations and the continuous training of personnel to ensure the successful implementation of modern technologies. The role of benchmarking in this process is also examined, as it allows for the comparative analysis of agribusiness enterprises that have successfully implemented innovation projects. Through this comparison, enterprises can identify best practices and effective strategies for enhancing their innovation potential. The analysis of innovation potential also includes an assessment of a company’s resource base, which is critical for determining its ability to develop and implement new technologies and processes. Companies with sufficient financial and human resources are better positioned to invest in innovative solutions and implement them effectively. Moreover, technological readiness, measured by the level of automation and digitalization, plays a significant role in a company’s ability to enhance its productivity through innovation. The innovation climate within an organization, including management’s support for innovation and employees' readiness for change, is a determining factor in whether innovative ideas will be successfully implemented. Furthermore, market opportunities, both domestic and international, are considered when evaluating the potential for innovation-driven growth, as they help define the market niches that can be filled by new products or services.