ECONOMIC MECHANISMS FOR STIMULATING INNOVATIVE ACTIVITY IN THE AGRICULTURAL SECTOR
Keywords:
agricultural innovation; economic mechanisms; tax incentives; agri-technology policy; rural development; UzbekistanAbstract
Innovation is widely recognized as a primary driver of productivity growth and sustainable development in the agricultural sector. However, the unique characteristics of agriculture — including high capital intensity, long investment horizons, climate-related risks, and market volatility — create structural barriers to private innovation investment. This paper examines the theoretical foundations and empirical evidence for economic mechanisms designed to stimulate innovative activity in agriculture. Drawing on comparative analysis of OECD countries, emerging economies, and Central Asian nations, the study evaluates the effectiveness of tax incentives, direct subsidies, public-private venture capital schemes, insurance instruments, agri-technology cluster policies, and market-based environmental mechanisms. The findings indicate that no single instrument is universally optimal; rather, a coordinated, context-sensitive policy mix — anchored in institutional quality and robust monitoring systems — delivers the highest impact. Special attention is given to the Uzbek agrarian reform context, identifying opportunities for evidence-based policy design.
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