The role of innovation in the digitalization of agricultural and food production

Abstract

Abstract: Innovations in all sectors are constantly becoming a key driver of economic development, progress, and competitiveness. In the context of the global digitalization of social activities, digital innovations are becoming of paramount importance for ensuring the food security of countries, based on the values of sustainable development and environmental priorities. Agri-food production is a critical area for the development of any national economy and has been undergoing significant digital transformations and shifts in recent years. It has been found that the agricultural market for digital innovations is emerging as one of the most dynamic, capacious, and promising. The total potential of the world's agrarian food market is estimated at 16.25 billion US dollars, with projected growth to 26.95 billion US dollars in 2029. The most popular digital solutions for agricultural producers at the current stage of management include the creation of digital field passports, the application of GIS technologies, electronic document management, agrochemical soil analysis, digital tools for accounting and analytical support of agricultural management, and monitoring the development of biological assets. It has been determined that in the field of agri-food production, digital innovations should be considered as a leading driver of sustainable development and a catalyst for ecological transformation. Studies of the latest trends in digital transformations in industry have shown that the main trends are technological, political, institutional, financial, and market-related. Digital innovations in agri-food production have significant strategic bonuses, the main of which are optimization of production, improvement of the level of welfare of farm animals, and protection of natural and biological resources, increasing the inclusiveness of living conditions of the population of rural areas, increasing transparency and openness of business, and creating long-term competitive advantages. Among the main limitations and challenges of implementing and using digital innovations in the agro-food sector at present are skills shortages, digital inequality across territories, low levels of social responsibility, and perceptions of sustainable development values by agribusiness and consumers. The results obtained showed that digital innovations are a necessary tool for building sustainable chains of added agri-food value. For their organization, the use of digital innovations such as blockchain, artificial intelligence, the Internet of Things, mobile data, and robotic management systems is recommended. Keywords: digitalization, agriculture, sustainable development, food, value chains, investment support, innovation.