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NOPOOR Policy Brief Nr.22: Innovation adoption and liquidity constraints in the presence of grassroots extension agents: Evidence from the peruvian highlands

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This policy brief is aimed at identifying the constraints to innovation adoption in agricultural production in developing economics. It focuses on the effect of a program aimed at activating a market for technical innovations in the region of Highlands in Peru. The authors find that innovations, who were supplied by local extension agents, were widely adopted and that liquidity constraints played only a limited role. These are important findings at a time when population growth and greater prosperity mean the world’s food production will need to double over the next three or four decades while growth of food production is seriously impeded in developing countries owing to a lack of yield increase.

Image: ©IRD - Dejoux Claude