Agricultural innovation—necessity is the mother of invention

Innovation is the process leading to the adoption of new or existing information, technology or practices; it includes factors that affect demand for and use of knowledge in novel and useful ways. In agriculture, innovation is essential to maintain productivity growth, to address issues around sustaining the natural resource base and to adapt to climate change. This paper examines the innovation process in Australian agriculture, highlighting the shift from a ‘technology push’ to an approach that integrates factors that affect the demand or pull for knowledge, and the role of research and development in innovation. Adoption of technologies is essentially a risk management problem: innovations that are profitable and exhibit a relative advantage will be readily adopted but will be influenced by other risk factors. Innovations are examined in the context of a return–risk framework. A case study on precision agriculture illustrates the innovation process and leads to a discussion on what future innovations are required. A survey of Nuffield scholars highlights some innovations that are being adopted and considered now. Most respondents have recently adopted innovations in soil management, crop management, plant breeding, precision agriculture and integrated pest and weed management. In the coming decades, Australian agriculture faces many challenges that will require new farming systems that use land, water, nutrients, pesticides and energy more efficiently and better manage its risks. Farmers will need to continue to be adaptable, particularly given the changing environmental conditions, and innovation will be the key to maintaining productive and resilient farming systems.