Agrarian Economy 2019 Т. 12 № 3-4:61-70

Niche innovations in agriculture: concepts, importance and perspectives

Cherevko І., Ph.D., Associate Professor
0000-0002-8411-6136
Lviv National Agrarian University

https://doi.org/10.31734/agrarecon2019.03.061

ANNOTATION

In Ukraine, the process of reorientation of agricultural producers, especially small ones, to the production of innovative niche products of innovative character is not properly performed, as it is constrained by a number of reasons of a subjective and objective nature. The problem is that identification of those causes and development of appropriate measures to eliminate them first expects formation of the appropriate understanding of the nature of innovations generally, and especially of niche ones. Thus, it is the subject of the conducted study, and its results are presented in this article. The main objective of the conducted research was to analyze the existing approaches to understanding of the content of innovations, to generalize them, to shape the opinion of that, and to define the concepts, importance and prospects of implementation of niche innovations in the practice of agricultural enterprises. Nowadays, innovations are not interpreted as achievements and results of research. The approach to their understanding is much broader, i.e. innovations are regarded as any change in products (or in their elements or methods of sale), in processes (technologies of production, storage and marketing), in organization of production and in its provision, in management, in market position, which are novelty. Considering such interpretation of the essence of innovation in agriculture, the niche direction of innovating of this branch and its enterprises deserves to exist independently and to be associated with reorientation of those enterprises to production of niche products and the search for relevant markets for their sales. Regardless of the type of the implemented innovations, they should lead to enhanced efficiency of the enterprise operation. Introduction of innovations by agricultural producers, even at the level of the family economy, is forced by the desire to obtain higher incomes and by the need to adapt the economy to the needs of the market economy. Cultivation of niche crops naturally is an activity of innovative character for domestic agricultural producers, especially small ones, because it allows increasing of their level of competitiveness and is accompanied by the need to apply appropriate innovative technologies. It suggests intensification of the development of this area of agricultural production in Ukraine in the near future, especially in the sector of small and medium-size agricultural producers. Diversification of the activity of small and medium-size agricultural producers through development of niche production will undoubtedly have a positive effect on the degree of implementation of the main concepts of sustainable development of rural areas in Ukraine, as it will objectively increase the well-being of both producers of those products and residents of the corresponding settlements, enhancing their employment and income levels and contributing to development of local social infrastructure.

KEY WORDS

innovation, innovative activity, niche agriculture, agricultural producers

FULL TEXT

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Article received 20.08.2019.