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The life cycle of innovation and the dynamics of profit in fruit growing

The life cycle of innovation and the dynamics of profit in fruit growing

Rivista di Economia Agraria 41(1): 105-122

The article discusses the concept of the life cycle of innovation and the dynamic process of introduction and assimilation of changes induced in a productive sector by technological progress. The concept is used to interpret structural changes in Italian fruit growing. A model is proposed in which variations in profit levels cause changes in the acreage under production which, in turn, affects profit levels. From this the idea of 'self determination' of the level of profits emerges.

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