This study originated from an issue that technological innovation is an important factor in modern agriculture and it should be controlled systematically by government and farms. The objective of this study is to find out the methods of economic evalu...
This study originated from an issue that technological innovation is an important factor in modern agriculture and it should be controlled systematically by government and farms. The objective of this study is to find out the methods of economic evaluation and management system of technological innovation in agriculture.
Technological progress in agriculture improves the agricultural production function. For any given amount of inputs, we get more output than we did in the past farming. Modern theories of endogenous growth attempt to explain the rate of technological progress, which the Solow model takes as exogenous. These models try to explain the decisions that determine the creation of knowledge through research and development.
The growth of agricultural income per farm is determined by the rate of technological progress. Because technological innovation in modernized agriculture is very important factors increasing the revenue and reducing the production cost. The difference between production functions is due to a difference of technique in how the inputs are used in producing the output. A farmer will not adapt a change in technology unless he expects that the adaption will lead to a reduction in per unit costs at the output at which he expects to operate. Since most innovations involve additional expenditures, total costs are likely to be increased at lower levels of output as a result of technological changes. Nevertheless, in order to increase the agricultural production and the levels of living it is necessary to develope and adapt technological improvements in agriculture.
The major problem in agricultural technological innovation is to evaluate the economic value of new technology adapted by farmers in agricultural accounting system and to prepare the technological management system to develope better technology. Farms should reflect the economic value of technological changes through financial analysis in agricultural accounting system. Because an essential activity in financial management of agriculture is the development of a timely technological information system that provides a means for the decision maker as a farm operator to measure, evaluate, control, and improve the financial performance of the farm business. The government should develope the education of the skilled technical hands, R&D investment, the accumulation and risk management of agricultural technological information, and the development and spread of agricultural technology. We can expect the principal role of local agricultural college in technological management system of agriculture by the decentralization of agricultural extension function.