Impact of digital innovation on development of agriculture in Latvia
2019
Rivza, B., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia) | Vasilevska, D., Liepaja Univ. (Latvia) | Rivza, P., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia)
Developed countries are successfully modernizing their economies, rapidly developing innovative technologies dominated by artificial intelligence, automation, and digital platforms. World leaders in the implementation of digital technologies are IT-companies, media, finance, and insurance. Mobile communications and the Internet have a huge impact on all sectors of the economy, and agriculture is no exception. Digital technologies increase production efficiency, complement other production factors, and stimulate innovation, significantly reduce costs, overcome information barriers that impede market access for many small farmers, expand knowledge through new ways of providing extension services and provide new ways to improve management supply chains in agriculture. The main limiting factor is the specificity of agricultural production. And although there are many examples of the positive impact of digitalization in rural areas, they often do not reach the expected level. The main reason is that technology can eliminate only some, but not all, barriers that farmers face. The aim of this research is to study the level of digitization of agriculture in Latvia, identifying the main obstacles to the introduction of digital technologies in the agricultural sector of the Latvian economy. Acceleration of digital transformations in agriculture, the formation of the digital agrarian sector of the economy depends largely on the investment climate in the country, increasing investment in the industry.
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