Global volatility of public agricultural R&D expenditure

R&D Innovation Adoption, Climatic Sensitivity, and Absorptive Ability Contribution for Agriculture TFP Growth in Pakistan

“…In the estimated model, the interactive term of human capital is incorporated with R&D indicators to measure the farmers' absorptive capacity [44]. The estimated model to examine the role of R&D innovation adoption, climatic factors, and absorptive capacity on ATFP t growth is as follows: lnATFP t = a 0 + a 1 lnAI t + a 2 lnAEMP t + a 3 lnHC t + a 4 lnRF t + a 5 lnAT t + a 6 lnFC t + α 7 lnSD t + a 8 lnHCxRD t + π t (9) Equation ( 9) is the final estimated model to investigate the behavior of technology adoption channels, absorptive ability, and climate factor in ATFPt growth in Pakistan. Here, ATFP t is agriculture total factor productivity, which is a dependent variable, while the independent variables AI t , AEMP t , HC t , RF t , AT t , FC t , SD t , and HCxRD t represent agriculture investment, employment, human capital, rainfall, agriculture tractor, fertilizer consumption, innovative seeds distribution, and interactive term to measure the absorptive ability.…”

“…Fundamental ways to mitigate agriculture risks are R&D, innovation adoption, and enhanced agronomic expertise. The farmer's expertise improves through their access to education, extension services, training, skill-based workshops, community-led solutions, and networking with research institutions [8,9]. To enhance agricultural productivity and agrarians' expertise, Steensland [1] highlights the policy priorities to adopt at a country level, which include R&D funding, extension services, agrarians' training, accelerating innovation adoption, networking policies, and financial management.…”

“…To feed the 10 billion projected global population in 2050, global agriculture requires a higher annual TFP growth of 1.73% as compared to current TFP growth, which is at 1.63% [1]. In order to sustain the global food requirement, the government R&D spending in agricultural innovation is essential for agriculture productivity, food security, and environmental sustainability [9]. The government should provide agricultural innovation, such as rival goods, especially innovative seed varieties and other essential agriculture technologies.…”

“…Further, the negligence of government towards agriculture R&D puts future agri-TFP growth at high risk [10]. Globally, the private sector accounted 52.5% of domestic agriculture R&D spending in 2011 as compared to 42% in 1980 [9]. A paradigm shift happened in agriculture R&D spending from public to private, and worldwide from higher income countries to middle-income countries (like USA to Brazil, China, and India) [9,11].…”

“…Globally, the private sector accounted 52.5% of domestic agriculture R&D spending in 2011 as compared to 42% in 1980 [9]. A paradigm shift happened in agriculture R&D spending from public to private, and worldwide from higher income countries to middle-income countries (like USA to Brazil, China, and India) [9,11]. Further, Chai et al [12] point out that the Chinese government spent the two-thirds of R&D funding on agriculture from their total, outspending the USA in both public and private sector agriculture expenditures.…”