CONCEPTUAL MANAGEMENT FRAMEWORK TO ENHANCE THE DEVELOPMENT OF INNOVATION ACTIVE AGRIBUSINESS ENTERPRISES

Abstract

The article presents the research findings on managing the development of innovation active agribusiness enterprises along with providing a well-reasoned approach to managing agricultural innovations. An in-depth analysis of fundamental conceptual premises revealed the presence of a strong correlation between scientific and technological progress and economic innovation process putting special emphasis on the dominant role of science and technology advances, the core of which is innovation. Innovations being a separate segment of the investment market and its object, both at a time, are closely intertwined with investment since investment beyond innovation often does not make sense, as far as it is hardly possible to keep effectively reproducing the same capital equipment, technology or organizational structure. Moreover, innovations are doomed to fail without attracting investment. Given the crucial significance of innovations for the agribusiness development, the need to build an innovation strategy that ensures the overall alignment of business innovation goals and investment objectives is considered paramount. Apart from the above, the study also offers a detailed overview on the best practices of implementing effective incentive mechanisms to encourage new forms of interaction and cooperation in science and technology between research institutions and industry which operate as integrated structures of different types. Such organizational paradigm of agribusiness innovative activities contributes to tackle the issues of fundamentally new innovative development associated with building new technological modes that spur the emergence of new management patterns for the “science – technology – industry” cycle. It is argued that the ultimate assessment of management effectiveness of innovative agribusiness development could be performed only after the completion of the final phase of innovation implementation since only after bringing a novelty to market one can evaluate the market demand satisfaction rate.