TECHNOLOGY, ECONOMY, AND INNOVATION

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The 25 years of the Club of Bologna Evolution and prospects of agricultural mechanization in the world 12-13 November 2016 EIMA INTERNATIONAL Bologna, Italy Sinfonia Hall TECHNOLOGY, ECONOMY, AND INNOVATION Gerhard Schiefer, Germany (schiefer@uni-bonn.de)

Clarification Economics =#= Finance X Economics: a. Highest benefit from certain amount of resources b. Certain benefits with as little resources as possible

Clarification Economics =#= Finance CEO X Economics: a. Highest benefit from certain amount of resources b. Certain benefits with as little resources as possible Finance Dept.

Clarification Economics CEO ECONOMICS in Innovation: barrier or driver Economics: a. Highest benefit from certain amount of resources b. Certain benefits with as little resources as possible Innovation Process Integration Process (food chain)

Statement: No innovation without science cooperation Technology Economics Innovation Developments too slow for society needs

Outline of discussion European FI-PPP project ECONOMICS in Innovation: barrier or driver Innovation Process Integration Process European focus on food chains

Proof 1: Innovation process Statement > Economics drives developments of technology > Economics drives adoption of technology Innovation: New development adopted by target groups (success) Many discoveries have never been adopted and not reached innovation status ("forgotten discoveries )

Stages of Innovation Process E E Stage 1: Idea discovery/new development Stage 2: Discovery/development marketable product with potential for changing rules of activities in enterprises or the economy (innovative product) Stage 3: Adoption by actors in enterprises/economy (innovation in economy)

Stages of Innovation Process Stage 1: Idea discovery/new development Disparity between resources (funds, labor) and desired benefits (e.g. food security etc.) creates needs initiates discoveries = Economic disparity as driver Positive Ecosystem

Stages of Innovation Process Stage 1: Idea discovery/new development Disparity between Food resources security: (funds, Elimination labor) of and waste desired benefits Food (e.g. food safety: security Short chains etc.) creates needs Urbanization: initiates discoveries Urban agriculture = Economic disparity as driver Vertical agriculture Positive Ecosystem

Stages of Innovation Process Stage 2: Discovery/development marketable product with potential for changing rules of activities in enterprises or the economy (innovative product) Barrier: Transformation into marketable products requires resources (funds, labor, etc.) > Economics as barrier: Provision of resources

Stages of Innovation Process Stage 2: Discovery/development marketable product with potential for changing rules of activities in enterprises or the economy (innovative product) Barrier: Transformation into marketable products requires resources (funds, labor, etc.) EU: FI-PPP > Economics as barrier: Provision of resources Funds

Stages of Innovation Process Stage 3: Adoption by actors in enterprises/economy (innovation in economy) > Economic adoption barrier 1: Investments needs (funds, training...) > Economic adoption barrier 2: Lack of positive operational benefit/cost ratio

Stages of Innovation Process Stage 3: Adoption by actors in enterprises/economy (innovation in economy) > Economic adoption barrier 1: Investments needs (funds, training...) > Economic adoption barrier 2: Lack of positive operational benefit/cost ratio Policy conclusion for market entry: Initial entry with high production costs may fit a few customers Sales uptake might ask for subsidies (public/private) for fitting customers with lower benefit/cost ratio

Conclusion Proof 1 No innovation without science cooperation Technology Economics Innovation Developments too slow for society needs

Proof 2: Integration process European FI-PPP project ECONOMICS in Innovation: barrier or driver Innovation Process Integration Process European focus on food chains

Food chain integration process

Food chain integration process Coordination/communication data economics Information needs

Food chain integration process Coordination/communication data economics Unsolved problems Providing interfaces between agric. and food Data ownership, data markets? Data exchange (when, what, how, what for )

Conclusion Proof 1 + Proof 2 No innovation without science cooperation Technology Economics Innovation Innovation process Integration process

We Conclusion need to Proof move 1 + forward Proof 2 No innovation without science Thank you cooperation Technology Economics Innovation Innovation process Integration process