Quantifying the impact of innovation barriers on the performance of agri-food enterprises in the Republic of Moldova

Abstract

The primary objective of this research is to evaluate the impact of innovation barriers on the performance of enterprises operating within the agri-food sector of the Republic of Moldova. Based on the results obtained, the study aims to propose strategic directions for enhancing innovation activities in the sector. To fulfill this objective, the analysis relies on data collected through a survey conducted between 2023 and 2024, involving a representative sample of 107 agri-food enterprises.The cause-effect relationship between innovation barriers and unrealized potential profit was estimated using the ridge regression method. The results indicate that high innovation costs and limited internal financial resources have a substantial impact on enterprise performance. A moderate influence is associated with factors such as the shortage of qualified personnel, difficulties in securing external funding, export restrictions, sales prohibitions related to the accumulation of state reserves, and obstacles in forming partnerships for innovation-related initiatives. Conversely, barriers such as weak market demand for innovative products, limited access to innovation-related information, and low employee motivation to engage in innovation activities were found to have minimal impact. The findings of the research served as a basis for proposing measures to reduce the influence of innovation barriers, differentiated according to their nature: endogenous and exogenous.