Innovation as a key instrument for the performance and competitiveness of agricultural and agritourism farms in Albania

Denisa Kurtaj¹*, Ilir Tomorri¹, Brunilda Baraku¹, Adela Çulani¹,
Fabjola Domi¹, Nertila Filipi1¹

¹Faculty of Economy and Agribusiness, Agricultural University of Tirana, Albania

*Corresponding author; E-mail: dpipero@ubt.edu.al

Abstract

Agriculture is a significant economic sector in Albania, contributing substantially to the country’s GDP and the number of employees. In this sector, over 300 thousand agricultural farms operate, most of which are micro and small, with land areas of up to 2 hectares. Innovation is considered a vital component in enhancing the performance and sustainability of agricultural farms, especially in developing economies such as Albania. This study examines how innovation affects the performance of agricultural farms and the sustainable development of Albania’s rural sector. Data was collected from 672 respondents across 12 regions, including both agricultural and agritourism farms, through face-to-face interviews. The data was processed with the SPSS program, aligned with the study’s objectives. The results show that innovation plays a critical role in increasing the performance and competitiveness of agricultural farms and agritourism enterprises, improving productivity, cost reduction and increased income. Innovation in Albania’s agricultural sector faces structural barriers, such as costs of implementing technologies, limited access to finance, lack of necessary digital infrastructure, insufficient farmers’ skills and knowledge, and support from public institutions. The study highlights the need for the design of policies and support mechanisms. Promoting innovation is crucial to boost agritourism, enhance farm performance, as well as the sustainable development of the rural sector.

Keywords: innovation; digital technologies; farm performance; productivity; sustainable rural development

JEL Codes: O13; O31; Q01; Q16