Institutions (such as policies, regulations, customs, standards and norms) profoundly affect innovation adoption in
agriculture. Nelson (2008) stresses the importance of institutions for competitiveness and economic growth, while
Gijsberg (2009) observes that outdated or inappropriate institutions may impede or distort the processes of generation and
adoption of technological innovation. North (1995) coined the term ‘institutional path dependence’ to explain the
persistence of outmoded policies, rules and incentives. Thus, failures by governments or private sector actors to ensure
that key institutions keep pace with technological advancement result in inefficiencies that lead to declining adoption rates,
with consequent impacts on competitiveness. Fostering an enabling and updated institutional framework is thus
considered crucial to effective technology transfer within the AIS.