Modeling the Efficiency of Operating Costs in Introducting Innovations in the Agrarian Sphere: Efficiency of Innovations in Crop Production

Abstract

The purpose of the work is to demonstrate the results of modeling the impact of innovation on the efficiency of operating costs for crop production by agricultural enterprises. Based on the dialectical method of cognition, abstract-logical, and graphic methods were used; nonlinear correlation-regression analysis and economic-mathematical modeling It is established that the innovations of technical and technological character contribute to the increase of the extremum of the yield function. At the same time, the impact of innovation on the profit function is twofold. In the case of free product innovation, an increase in output estimated at market prices generates an increase in the extremum of the profit function while increasing the profit optimum of costs. That is why the latter is approaching the technological optimum. In turn, the innovation payoff affects the profit curve, reducing the value of the cost optimum and the function extremum. However, a significant increase in the cost of an innovative product can lead to a decrease in profit below the achieved level