Investment in Agricultural Research and Development: Catalysts for Economic Growth and Scientific Breakthroughs
DOI:
https://doi.org/10.57125/FEL.2025.03.25.10Keywords:
Agricultural exports, Ukrainian agricultural sector, innovation diffusion, precision irrigation, private sector R&D, technological adoptionAbstract
Amid Ukraine’s post-2014 economic recovery and evolving integration with the European Union, agricultural research and development (R&D) has emerged as a strategic priority. This study investigates whether R&D investments have catalysed agricultural growth, export expansion and technological innovation from 2015 to 2023. Using trend analysis, correlation measures and innovation tracking, the research evaluates patterns in R&D funding sources, economic performance and innovation diffusion. Results reveal that agricultural R&D investments increased by over 80% during the study period, with private actors accounting for more than 60% of the total funding. Correspondingly, grain exports rose by 25%, which indicates a positive economic return on innovation spending. Additionally, key innovations like bio-fertilisers and precision irrigation technologies have led to measurable environmental and efficiency gains in pilot regions. Despite these outcomes, public underfunding and fragmented institutional support continue to hinder wider adoption. The findings highlight the need for enhanced public-private coordination and strategic investment to unlock the full transformative potential of agricultural R&D in Ukraine. This will ultimately guide the nation towards a sustainable future.
References
Atolia, M., Loungani, P., Marquis, M., & Papageorgiou, C. (2020). Rethinking development policy: What remains of structural transformation? World Development, 128, Article 104834. https://doi.org/10.1016/j.worlddev.2019.104834
Berxolli, A., Potryvaieva, N., Dovgal, O., Kuzoma, V., & Pavliuk, S. (2023). Innovation in Ukrainian agriculture to mitigate the impact of the invasion. International Journal of Environmental Studies, 80(2), 307–313. https://doi.org/10.1080/00207233.2022.2160080
Borah, A., Sahu, S., Srivastava, R. P., Singh, M., & Tyagi, D. B. (2024). Exploring the economic challenges threatening global agriculture and food security. Ecology, Environment & Conservation, 30(05), S193–S199. https://doi.org/10.53550/EEC.2024.v30i05s.031
Buzogány, A., & Varga, M. (2025). Breaking the rural underdevelopment trap? Eastern Enlargement, agricultural policy and lessons for Ukraine. Journal of European Public Policy, 1-22. https://doi.org/10.1080/13501763.2025.2486079
Chakrabarti, D., Bhattacharjee, S., & Sethi, P. (2025). The unsung drivers of structural transformation in developing economies. Journal of Economic Surveys. https://doi.org/10.1111/joes.12688
Ciaffi, G., Deleidi, M., & Mazzucato, M. (2024). Measuring the macroeconomic responses to public investment in innovation: Evidence from OECD countries. Industrial and Corporate Change, 33(2), 363–382. https://doi.org/10.1093/icc/dtae005
Dai, L., Zhang, J., & Luo, S. (2022). Effective R&D capital and total factor productivity: Evidence using spatial panel data models. Technological Forecasting and Social Change, 183, Article 121886. https://doi.org/10.1016/j.techfore.2022.121886
Deng, H., Jin, Y., Pray, C., Hu, R., Xia, E., & Meng, H. (2021). Impact of public research and development and extension on agricultural productivity in China from 1990 to 2013. China Economic Review, 70, Article 101699. https://doi.org/10.1016/j.chieco.2021.101699
Dong, L. (2021). Toward resilient agriculture value chains: Challenges and opportunities. Production and Operations Management, 30(3), 666–675. https://doi.org/10.1111/poms.13308
Dutta, M., Gupta, D., Juneja, S., AlNadhari, S., & Belhaouari, S. B. (2025). Machine learning insights for sustainable hydroponic cultivation and growth monitoring of allium cepa using smart hydro kit. Scientific Reports, 15(1), Article 10164. https://doi.org/10.1038/s41598-024-82920-8
European Commission. (2021). Horizon Europe Strategic Plan 2021–2024. Brussels: European Commission. https://ec.europa.eu/programmes/horizon2020/en/what-horizon-2020
Giagnocavo, C., De Cara-García, M., González, M., Juan, M., Marín-Guirao, J. I., Mehrabi, S., Rodríguez, E., Van Der Blom, J., & Crisol-Martínez, E. (2022). Reconnecting farmers with nature through agroecological transitions: interacting niches and experimentation and the role of agricultural knowledge and innovation systems. Agriculture, 12(2), Article 137. https://doi.org/10.3390/agriculture12020137
Gollin, D., & Kaboski, J. P. (2023). New views of structural transformation: Insights from recent literature. Oxford Development Studies, 51(4), 339–361. https://doi.org/10.1080/13600818.2023.2280748
Goncharenko, O., Anishchenko, V., & Sirenko, K. (2023). Innovation-driven development of Ukraine’s agriculture under complex threats. Science and Innovation, 19(6), 65–76. https://doi.org/10.15407/scine19.06.065
Guesmi, B., Monje, J. H. C., Alfaro Valenzuela, M., & Gil, J. M. (2024). Impact of public research investments on agricultural productivity in Chile. Agribusiness, 40(1), 277–298. https://doi.org/10.1002/agr.21842
Huang, X., Khan, Y. A., Arshed, N., Salem, S., Shabeer, M. G., & Hanif, U. (2023). Increasing social resilience against climate change risks: A case of extreme climate affected countries. International Journal of Climate Change Strategies and Management, 15(3), 412–431. https://doi.org/10.1108/IJCCSM-04-2022-0051
Khan, H. U. R., Zaman, K., Khan, A., & Islam, T. (2017). Quadrilateral relationship between information and communications technology, patent applications, research and development expenditures, and growth factors: Evidence from the group of seven (G-7) countries. Social Indicators Research, 133, 1165–1191. https://doi.org/10.1007/s11205-016-1402-6
Khatoon, U. T., & Velidandi, A. (2025). An overview on the role of government initiatives in nanotechnology innovation for sustainable economic development and research progress. Sustainability, 17(3), Article 1250. https://doi.org/10.3390/su17031250
Liu, H., Jiang, Y., Khurshid, A., Saleem, S. F., & Calin, A. C. (2024). How green strategies and policies influence production‐based emissions, industrial development and sustainable development goals?. In Natural Resources Forum. Oxford, UK: Blackwell Publishing Ltd. https://doi.org/10.1111/1477-8947.12574
Ma, C., Li, H., Saleem, S. F., & Mone, F. (2023). Balancing progress and sustainability: Industrial innovation's impact on Europe's emission management, economic expansion, and financial growth. Romanian Journal of Economic Forecasting, 26(3), 129–147. https://ipe.ro/new/rjef/rjef3_2023/rjef3_2023p129-147.pdf
Mamonova, N., Wengle, S., & Dankevych, V. (2023). Queen of the fields in wartime: what can Ukrainian corn tell us about the resilience of the global food system?. The Journal of Peasant Studies, 50(7), 2513–2538. https://doi.org/10.1080/03066150.2023.2255568
OECD. (2023). Main science and technology indicators. Organisation for Economic Co-operation and Development. https://www.oecd.org/sti/msti.htm
Onegina, V., Kucher, L., Kucher, A., Krupin, V., Kłodziński, M., & Logos, V. (2024). Unlocking innovation capacity: Strategies for micro-, small, and medium enterprises in Ukrainian agriculture. Agriculture, 15(1), Article 65. https://doi.org/10.3390/agriculture15010065
Pickson, R. B., Gui, P., Jian, L., & Boateng, E. (2025). The role of private sector investment in agriculture: A catalyst for sustainable development in Asia. Sustainable Development, 33(1), 113–128. https://doi.org/10.1002/sd.3105
Porter, M. E., & Linde, C. V. D. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of economic perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
Ranran, C., & Jingsuo, L. (2024). The impact of agricultural production agglomeration on agricultural economic resilience: Based on spatial spillover and threshold effect test. Frontiers in Sustainable Food Systems, 8, Article 1464732. https://doi.org/10.3389/fsufs.2024.1464732
Rial, R. C. (2024). Biofuels versus climate change: Exploring potentials and challenges in the energy transition. Renewable and Sustainable Energy Reviews, 196, Article 114369. https://doi.org/10.1016/j.rser.2024.114369
Romer, P. M. (1990). Endogenous technological change. Journal of political Economy, 98(5, Part 2), S71–S102. Available at: https://www.journals.uchicago.edu/doi/abs/10.1086/261725
Saleem, S. F., Khan, M. A., & Tariq, M. (2025). Moderating role of government effectiveness and innovation in sustainable economic growth relationship in Middle East & North Africa countries. Natural Resources Forum, 49(1), 516–540. https://doi.org/10.1111/1477-8947.12397
Shabir, M. (2024). Does financial inclusion promote environmental sustainability: Analyzing the role of technological innovation and economic globalization. Journal of the Knowledge Economy, 15(1), 19–46. https://doi.org/10.1007/s13132-022-01035-5
Sitnicki, M. W., Kurinskyi, D., Pimenowa, O., Wasilewski, M., & Wasilewska, N. (2024). Strategic formation of agricultural market clusters in Ukraine: Emerging as a global player. Sustainability, 16(21), Article 9430. https://doi.org/10.3390/su16219430
State Statistics Service of Ukraine. (2024). Share of food industry and agricultural raw materials processing production in exports. Retrieved from https://sdg.ukrstat.gov.ua/2-3-2/
United Nations. (2015). Transforming our world: The 2030 agenda for sustainable development (A/RES/70/1). United Nations General Assembly. https://sdgs.un.org/2030agenda
Uyar, A., Kuzey, C., & Kilic Karamahmutoglu, M. (2022). Macroeconomic factors, R&D expenditure and research productivity in economics and finance. Managerial Finance, 48(5), 733–759. https://doi.org/10.1108/MF-12-2021-0602
Wang, X., Khurshid, A., Qayyum, S., & Calin, A. C. (2022). The role of green innovations, environmental policies and carbon taxes in achieving the sustainable development goals of carbon neutrality. Environmental Science and Pollution Research, 29(6), 8393–8407. https://doi.org/10.1007/s11356-021-16208-z
World Bank. (2022). World development report 2022: Finance for an equitable recovery. Washington, DC: World Bank. https://www.worldbank.org/en/publication/wdr2022
World Bank. (2025). Agriculture, forestry, and fishing, value added (% of GDP) – Ukraine. Retrieved from https://tradingeconomics.com/ukraine/agriculture-value-added-percent-of-gdp-wb-data.html
Yuan, F., & Zhang, P. (2024). Are natural resources, sustainable growth and entrepreneurship matter endogenous growth theory? The strategic role of technical progress. Resources Policy, 96, Article 105189. https://doi.org/10.1016/j.resourpol.2024.105189
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 authors
This work is licensed under a Creative Commons Attribution 4.0 International License.
