The nurturing role of the local support ecosystem in the development of the Agtech sector in Argentina

Abstract

PurposeThe objective of the paper is to learn about the enabling factors that fostered the development of the Agtech sector in Argentina. The authors analyze how the local ecosystem (S&T institutions, incubators and accelerators, domestic clients, venture capitals and other actors) contributed to the emergence, consolidation and early internationalization of Agtech ventures.Design/methodology/approachThroughout 2020 the authors held 16 semi-structured interviews with experts, CEOs and managers of Agtech firms, incubator and accelerator managers, as well as with other stakeholders of the Agtech sector. All the interviews were recorded and then transcribed. The authors also undertook two case studies, one on a consortium of agricultural producers that created an Agtech incubator, and another on a successful Agtech venture. The selection of the case studies was based on the information collected during the interviews with local stakeholders (“snowballing technique”).FindingsLinkages with the actors of the local ecosystem allowed Agtech ventures to validate their services and value proposition, identify business opportunities, improve and develop technologies, obtain funding, and reach out to new national and international customers.Research limitations/implicationsWhile a case study methodology does not allow for direct generalization to other experiences, the authors’ findings shed light on relevant factors behind the development of the Agtech sector in Argentina which cannot be easily captured through quantitative methods.Originality/valueThis paper contributes to achieve a better understanding of the factors that allow the emergence and consolidation of young ventures based on disruptive technologies in Latin America. Hence, it contributes to the advancement of knowledge in an emerging field: the generation and dissemination of 4.0 technologies in developing regions.