Territory and innovation behaviour in agri-food firms:does rurality matter?

Abstract

Innovation behaviour of agri-food firms depends on the firm structure but also on the characteristics of the territory in which they are established. Spatial considerations are important to determine the propensity of a firm to innovate. Using a database of innovative and non-innovative agroi-food firms located inthe Autonomous Community of Valencia, the paper assesses the effect of firms’ variables and also the territorial features such as urban/rural areas, percentage of native population, education level of population and distance to technological institutes. Results show that rural areas are not a handicap for innovation but improved access to training services and technological institutes have a significant influence on innovation.