INNOVATION AND ITS IMPORTANCE FOR THE COMPETITIVENESS OF FARMS

Abstract

These days, in farming, similarly to the other sectors of economy, innovations play a key role. Innovations are an indispensable factor in the improvement of production efficiency and cost reduction and contribute to the advancement in competitiveness of farm households. It is necessary to overcome the innovation barriers appearing in these households. And this process is maintained by the introduction of tools supporting the implementation of innovations as part of the Common Agricultural Policy. Farming households most often decide to implement the innovations by purchasing modern machines and devices (process innovations) as well as by changing the production objectives and the applied species of plants and animal species (product innovations). Thanks to these novelties, the farming households reach the growth in the generated production and decrease the costs of the farming business activity. Implementing innovations – in view of the growing competition pressure – should, however, be the continuous and complex process.