Innovation and sectoral linkages in the agri-food system in the Valencian Community

Abstract

This paper aims to analyze the innovative effort of the agri-food system (AFS) in the Valencian Autonomous Community (VC), Spain, estimating the intensity of innovation in each subsector of the AFS. The analysis distinguishes between the direct and indirect (or induced) innovation intensities incorporated by the acquisition of inputs from other subsectors produced in the VC or in the rest of Spain. The methodology employed is based on the input-output framework combined with data of technological innovation in enterprises. This methodology provides the novelty of been applied to a region the VC and not to a country as it is usually done. The results show that the weight of intersectoral flows in the total innovation effort of the AFS is significant with marked differences between primary and food industry. In most activities, embodied knowledge in inputs purchased from Spain is greater than embodied knowledge of inputs produced inside the region.