Do economic performance and innovation have a relationship? Evidence from Operation Groups in the Italian agri-food sector

This study aims to investigate the potential mutual interdependence between an environment that fosters and encourages innovation and the economic performance of agricultural businesses operating in the sector. Specifically, it seeks to determine whether the economic performance of farms in regions...

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Main Authors: Francesco Mazzulla, Meri Raggi
Format: Article
Language:English
Published: Firenze University Press 2025-06-01
Series:Bio-based and Applied Economics
Subjects:
Online Access:https://oaj.fupress.net/index.php/bae/article/view/16801
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author Francesco Mazzulla
Meri Raggi
author_facet Francesco Mazzulla
Meri Raggi
author_sort Francesco Mazzulla
collection DOAJ
description This study aims to investigate the potential mutual interdependence between an environment that fosters and encourages innovation and the economic performance of agricultural businesses operating in the sector. Specifically, it seeks to determine whether the economic performance of farms in regions with established Operational Groups (OG) is better than that of farms located in regions where OGs have not yet been implemented, using the European Innovation Partnership for Agricultural Productivity and Sustainability (EIP-AGRI). We combine data on OG’s collected from the Innovarurale website, with financial information from the ORBIS database for the period 2013-2022, to assess farm performance. Our estimation strategy employs three staggered difference-in-differences (DID) models and an event-study to validate the parallel trends assumption. The results show a positive association between the presence of OGs in a region and an improved economic performance. Our findings suggest that the diffusion of innovation tends to be related to the characteristics of the local economic environment, which should be a critical factor in future policy discussions.
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issn 2280-6180
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publishDate 2025-06-01
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spelling doaj-art-fe02b2fece114b97ad2b96dfd584615e2025-08-20T02:05:36ZengFirenze University PressBio-based and Applied Economics2280-61802280-61722025-06-0110.36253/bae-16801Do economic performance and innovation have a relationship? Evidence from Operation Groups in the Italian agri-food sectorFrancesco Mazzulla0Meri Raggi1Università di BolognaUniversità di Bologna This study aims to investigate the potential mutual interdependence between an environment that fosters and encourages innovation and the economic performance of agricultural businesses operating in the sector. Specifically, it seeks to determine whether the economic performance of farms in regions with established Operational Groups (OG) is better than that of farms located in regions where OGs have not yet been implemented, using the European Innovation Partnership for Agricultural Productivity and Sustainability (EIP-AGRI). We combine data on OG’s collected from the Innovarurale website, with financial information from the ORBIS database for the period 2013-2022, to assess farm performance. Our estimation strategy employs three staggered difference-in-differences (DID) models and an event-study to validate the parallel trends assumption. The results show a positive association between the presence of OGs in a region and an improved economic performance. Our findings suggest that the diffusion of innovation tends to be related to the characteristics of the local economic environment, which should be a critical factor in future policy discussions. https://oaj.fupress.net/index.php/bae/article/view/16801EIP-AGRIstaggered difference-in-differences modelOperational Groupseconomic performance evaluation
spellingShingle Francesco Mazzulla
Meri Raggi
Do economic performance and innovation have a relationship? Evidence from Operation Groups in the Italian agri-food sector
Bio-based and Applied Economics
EIP-AGRI
staggered difference-in-differences model
Operational Groups
economic performance evaluation
title Do economic performance and innovation have a relationship? Evidence from Operation Groups in the Italian agri-food sector
title_full Do economic performance and innovation have a relationship? Evidence from Operation Groups in the Italian agri-food sector
title_fullStr Do economic performance and innovation have a relationship? Evidence from Operation Groups in the Italian agri-food sector
title_full_unstemmed Do economic performance and innovation have a relationship? Evidence from Operation Groups in the Italian agri-food sector
title_short Do economic performance and innovation have a relationship? Evidence from Operation Groups in the Italian agri-food sector
title_sort do economic performance and innovation have a relationship evidence from operation groups in the italian agri food sector
topic EIP-AGRI
staggered difference-in-differences model
Operational Groups
economic performance evaluation
url https://oaj.fupress.net/index.php/bae/article/view/16801
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