{"title":"The amplified effect of market size on innovation: A comparative analysis of pea and wheat seed value chains in France","authors":"Aline Fugeray-Scarbel, Stéphane Lemarié","doi":"10.1016/j.agsy.2024.104051","DOIUrl":null,"url":null,"abstract":"<div><h3>CONTEXT</h3><p>Despite their interest for agro-ecological transition, grain legumes remain poorly cultivated in France. One reason is the low availability of seed innovations for farmers which, to a large extend, is related to the low incentives to innovate for these crops which represent a small acreage.</p></div><div><h3>OBJECTIVE</h3><p>In this article, we analyze the link between market size and the efforts made to create, diffuse and value innovation. We compare two value chains related to two field crops in France that mainly differ in terms of market size, namely, pea and wheat. Our analysis focuses more specifically on the seed-related innovations created in the upstream part of these value chains. In both of these cases, innovation relies on multiple complementary activities carried out by different actors, including the creation of the innovation, the production and diffusion of technical knowledge, the production and distribution of the innovation, and its valorization by downstream users.</p></div><div><h3>METHODS</h3><p>The two case studies on the pea and wheat sectors were conducted using a qualitative approach based on public documentation, 16 semistructured interviews with various actors in the innovation system of the two value chains and data on commercialized pea and wheat varieties.</p></div><div><h3>RESULTS AND CONCLUSION</h3><p>We show that the level of investment in each of these activities is highly related to market size. This result is first explained by the fact that part (if not all) of the cost of these activities is fixed; that is, these activity costs do not depend on the diffusion of innovation. This result is also explained by the complementarity of these activities, which makes the investment in one activity less beneficial if the investment in complementary activities is low. As a consequence, the effect of market size on innovation is self-reinforcing in those cases where innovation relies on different activities managed by different actors.</p></div><div><h3>SIGNIFICANCE</h3><p>In agricultural sectors, where there is a need for innovations in both large and small markets, this result calls for an evolution of innovation funding mechanisms to attenuate the impact of market size.</p></div>","PeriodicalId":7730,"journal":{"name":"Agricultural Systems","volume":null,"pages":null},"PeriodicalIF":6.1000,"publicationDate":"2024-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0308521X24002014/pdfft?md5=76c0536af98dbefd991d269d050fd3c9&pid=1-s2.0-S0308521X24002014-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Agricultural Systems","FirstCategoryId":"97","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0308521X24002014","RegionNum":1,"RegionCategory":"农林科学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AGRICULTURE, MULTIDISCIPLINARY","Score":null,"Total":0}
引用次数: 0
Abstract
CONTEXT
Despite their interest for agro-ecological transition, grain legumes remain poorly cultivated in France. One reason is the low availability of seed innovations for farmers which, to a large extend, is related to the low incentives to innovate for these crops which represent a small acreage.
OBJECTIVE
In this article, we analyze the link between market size and the efforts made to create, diffuse and value innovation. We compare two value chains related to two field crops in France that mainly differ in terms of market size, namely, pea and wheat. Our analysis focuses more specifically on the seed-related innovations created in the upstream part of these value chains. In both of these cases, innovation relies on multiple complementary activities carried out by different actors, including the creation of the innovation, the production and diffusion of technical knowledge, the production and distribution of the innovation, and its valorization by downstream users.
METHODS
The two case studies on the pea and wheat sectors were conducted using a qualitative approach based on public documentation, 16 semistructured interviews with various actors in the innovation system of the two value chains and data on commercialized pea and wheat varieties.
RESULTS AND CONCLUSION
We show that the level of investment in each of these activities is highly related to market size. This result is first explained by the fact that part (if not all) of the cost of these activities is fixed; that is, these activity costs do not depend on the diffusion of innovation. This result is also explained by the complementarity of these activities, which makes the investment in one activity less beneficial if the investment in complementary activities is low. As a consequence, the effect of market size on innovation is self-reinforcing in those cases where innovation relies on different activities managed by different actors.
SIGNIFICANCE
In agricultural sectors, where there is a need for innovations in both large and small markets, this result calls for an evolution of innovation funding mechanisms to attenuate the impact of market size.
期刊介绍:
Agricultural Systems is an international journal that deals with interactions - among the components of agricultural systems, among hierarchical levels of agricultural systems, between agricultural and other land use systems, and between agricultural systems and their natural, social and economic environments.
The scope includes the development and application of systems analysis methodologies in the following areas:
Systems approaches in the sustainable intensification of agriculture; pathways for sustainable intensification; crop-livestock integration; farm-level resource allocation; quantification of benefits and trade-offs at farm to landscape levels; integrative, participatory and dynamic modelling approaches for qualitative and quantitative assessments of agricultural systems and decision making;
The interactions between agricultural and non-agricultural landscapes; the multiple services of agricultural systems; food security and the environment;
Global change and adaptation science; transformational adaptations as driven by changes in climate, policy, values and attitudes influencing the design of farming systems;
Development and application of farming systems design tools and methods for impact, scenario and case study analysis; managing the complexities of dynamic agricultural systems; innovation systems and multi stakeholder arrangements that support or promote change and (or) inform policy decisions.