Agricultural Economics Department

 

Cornhusker Economics

Date of this Version

11-18-2009

Document Type

Article

Comments

Published by the Department of Agricultural Economics, University of Nebraska – Lincoln. Copyright 2009 Regents of the University of Nebraska.

Abstract

To successfully compete in today’s globalized economy, agribusiness firms need to innovate. Innovation enables firms to produce new and/or differentiated products/services that satisfy specialized consumer demands, and enables firms to generate cost reducing processes to out-compete rivals in domestic and international food markets. Firms will engage in innovative activities if they are able to recoup research and development (R&D) costs and capture innovation rents, so it is critical that they are able to identify the optimal strategies of protecting and profiting from their innovations.

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