INNOVATIVE PRINCIPLES OF TRANSFORMATION BUSINESS MODELS IN AGRICULTURAL PRODUCTION

Keywords: agricultural production, business model, green economy, innovation, innovative development, innovative transformation, modernization, institutional regulation

Abstract

The article is devoted to the substantiation of innovative principles of transformational changes and institutional tools for the formation and development of modern business models in agro-industrial production. It was established that the low rate of modernization of the national economy and its basing on low technological systems, the low rate of integration, the dominance of raw materials orientation and resource-consuming technologies, regulatory and financial restrictions do not contribute to the spread of innovative forms of business organization and modern business models both on the scale of the domestic economy and in agro-industrial production. It is emphasized that the presence of institutional and ontological limitations in the spread of innovative forms of business in the agrarian sphere due to the suboptimal structure of production, technological backwardness, partial shadowing of the agrarian economy, permanent political and economic crisis. It was established that the negative structural changes in the agricultural sector did not allow to form the prerequisites for increasing the volume of advanced processing products, intensification of reproduction, introduction of new technologies and the spread of new business models. It was determined that the investment processes in the industry did not contribute to the modernization of agricultural production and became one of the factors in consolidating the deformed production structure of agriculture and its raw material specialization. The assessment of the trends in the spread of innovative forms of agribusiness proves that their development is opposed by: the low scale and pace of digitization in the industry, the low innovative activity of agricultural producers, the institutional inefficiency of the state; dependence on the import of raw materials and agricultural equipment and quasi-innovations, technological backwardness of production. It is justified that for the implementation of innovative principles of agricultural development, institutional regulation should be aimed at spreading new business strategies based on deepening specialization, integration, cooperation, various forms of partnership and information and communication technologies. The efficiency criteria of innovative business models can be considered cost minimization; optimization of business processes; increase in efficiency and quality of production processes.

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Published
2024-01-30
How to Cite
Honcharenko, O., & ВalatskyiO. (2024). INNOVATIVE PRINCIPLES OF TRANSFORMATION BUSINESS MODELS IN AGRICULTURAL PRODUCTION. Economy and Society, (59). https://doi.org/10.32782/2524-0072/2024-59-117
Section
ECONOMICS