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.

While the Agricultural Science and Technology Indicators (ASTI) initiative provides data and analysis of domestic public and private spending on agricultural research and development for a wide range of developing countries, the literature pays little attention, if any, to foreign assistance to agricultural, fishing and forestry research and agricultural extension. The objective of the present study is to fill this gap.