Agricultural innovation in low-income tropical countries contributes to a more effective and sustainable use of natural resources and reduces hunger and poverty through economic development in rural areas. Yet, despite numerous recent public and private initiatives to develop capacities for agricultural innovation, such initiatives are often not well aligned with national efforts to revive existing Agricultural Innovation Systems (AIS).
This study explores the properties of innovation systems and their contribution to increased eco-efficiency in agriculture. Using aggregate data and econometric methods, the eco-efficiency of 79 countries was computed and a range of factors relating to research, extension, business and policy was examined. Despite data limitations, the analysis produced some interesting insights. For instance public research spending has a positive significant effect for emerging economies, while no statistically significant effect was found for foreign aid for research.