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  • https://doi.org/10.1111/j.0002-9092.2004.00684.xCopy DOI Icon

Agricultural Innovation and New Ventures: Assessing the Commercial Potential

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Abstract

Innovation and new ventures have been part of the food production and distribution industry for decades if not centuries. In recent times, new ventures under the banner of valueadded agriculture have become the mantra for producers, politicians, and agri-businesses that are searching for better margins and higher incomes than provided by traditional commodity production and distribution. But, the commercial potential of value-added ventures and innovations is not obvious, often is not realized, and may be frequently overestimated. In fact, studies of new business start-ups in agriculture and other sectors indicate that a high proportion of those businesses fail during the first twelve months of operation, and many are not sustainable even after this most vulnerable start-up period (SBA). The objective of this paper is to provide a framework for assessing the commercial potential of innovation in agriculture. We highlight the four critical components of market analysis essential to successful innovation and new ventures, those are the assessment of customers, competitors, sustainable competitive advantage, and internal capabilities. We identify and describe where concepts of economics

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