The development of innovative activity in the agricultural sector of Ukraine’s economy

Abstract

The article explains what an innovative activity in the economy involves and unfolds how the main concepts of theory of innovation are applied into the agricultural sector. It is pointed out that agrarian innovation is the final stage of fostering novelties in the agricultural sector (plant varieties, livestock breeds, cultivation technologies, etc), which has resulted in economic, social, ecological benefits and expanded reproduction. The study reveals that applying the main concepts of theory of innovation into agriculture has its specific features, namely: integrating innovative technologies into processes occurring in the nature; producing living organisms, which can be objectives and targets of innovation. The author identifies the factors hindering the introduction of innovations in the agricultural sector. It has been found that the lack of financial support and instability of legislation in the country are the root causes. A lack of necessary information and new ideas are yet other prime obstacles which prevent innovation processes in agricultural units. It is demonstrated that an innovative activity in proactive enterprises is a key factor for effective growth and a sustainable increase in agricultural production. It contributes to positive changes in production technology and production structure, a significant shift in motivation. The results indicate that some innovative products such as new varieties and hybrids of agricultural plants, new livestock and poultry breeds, machines and mechanisms, tools and equipment, modern means of production, etc. are of high demand on the market of innovative products. It is claimed that agricultural studies play an important role in meeting the demand since they accelerate the growth of this field by generating and introducing innovations. The author suggests the following steps for strengthening innovation policies in agricultural units: bringing in new competitive technologies in crop and livestock production; introducing high-yielding breeds and crop varieties / hybrids resistant to diseases and climate change effects; applying bio-technologies which increase production of new healthy products; improving means and methods of land cultivation; cleaning and storing raw materials; using energy-efficient technologies and ecological innovations, that make it possible to increase yields and productivity, minimize losses and sustain the environment.