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Abstract
A capabilities perspective of farm level innovation in the beef cattle industry is
presented using information economics. The knowledge capabilities of non-corporate
beef cattle enterprises have two interrelated components: the knowledge generated
from the activities that takes place during production; and the information channels
that producers possess to source external information. Although both are important for
analysing innovation, the external information sources relating to producers’
knowledge are emphasised here. Emphasis on the path-dependent nature of
knowledge focuses the discussion of innovation on the communication of information
and how this affects the organisation of knowledge. The effects of differing
knowledge capabilities are central to understanding the variation in innovative
processes.
Preliminary results from focus groups and in-depth interviews of both producers and
their nominated information sources in the New England area of New South Wales in
mid-2009 provide evidence for the efficacy of information channels. Case studies of
innovations exemplify how differing attributes of innovations combine with network
structures and institutional factors to influence the processes of communication
between producers and their information sources. Communication of high quality
information is shown to be more involved than simple exposure and must be
considered from the point of view of the user, allowing it to be reconciled with
existing knowledge of the producer. Of importance to producers is the source,
delivery and history of the information and these are reflected in the approach taken in
this research. The outcomes suggest that producers should be making decisions on the
basis of their self organised knowledge capital rather than following innovations
fashionable in the industry at large. The role of policy makers is to complement this
by providing favourable conditions for knowledge capital formation where high
quality information flows are likely outcomes. Policy makers could look at improving
the ability of producers to integrate new technologies and practices into their
production indirectly rather than looking to directly persuade them to adopt individual
innovations.