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Publisher's Note Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations
- Publisher
- Springer Journals
- Copyright
- Copyright © Springer Nature Switzerland AG 2020
- ISSN
- 1120-2890
- eISSN
- 1973-820X
- DOI
- 10.1007/s40888-020-00182-9
- Publisher site
- See Article on Publisher Site
Abstract
This paper analyses the effect of innovation on firms’ technical efficiency. Using climate-related patent data to proxy for innovation activity in different technological fields, the paper employs a stochastic frontier approach to estimate the impact of innovative efforts on agricultural firms’ technical efficiency taking account of both unobservable heterogeneity and double heteroscedasticity in the inefficiency and idiosyncratic terms. Our findings confirm that innovation has a positive impact on firms’ productivity (technical efficiency). While agricultural firms located in Germany and Sweden are more efficient compared to those in southern countries, all the European countries considered are distant from the maximum production frontier. This leaves room for governments to design economically sustainable agriculture policies, incentivize firms and foster technological innovation to achieve adaptations to present and future changes in climate.
Journal
"Economia Politica" – Springer Journals
Published: Apr 28, 2020
Keywords: Agriculture; Adaptation; Climate-related patent; Stochastic frontier approach; Q12; Q16; O3