Technological innovation and agricultural performance in the ASEAN region: The role of digitalization

In the 21st century, technological innovation has become a crucial driver of economic transformation. It also contributes to agricultural performance, particularly through its influence on research intensity and labor productivity growth. However, its specific implications for agricultural performance in the ASEAN region remain insufficiently examined. Since the agricultural sector is essential for ensuring food security and sustaining rural livelihoods, understanding the intersection between innovation and agricultural outcomes becomes indispensable. This study explores how technological innovation impacts agricultural performance in the ASEAN region from 2000 to 2022, emphasizing the moderating role of digitalization. Using the Panel-Corrected Standard Errors (PCSE) model alongside various robustness tests, the study identifies several key findings. (1) Technological innovation enhances agricultural performance. (2) Technological innovation improves agricultural performance by increasing agricultural research intensity and labor productivity growth. (3) Digitalization positively moderates the effect of technological innovation on agricultural performance. (4) Digitalization further amplifies the impact of technological innovation on the production of crops, livestock, fisheries, agri-value added, and agri-export. (5) Heterogeneity analysis indicates that ASEAN countries with high levels of economic growth, agricultural reliance, and education experience the most significant benefits from technological innovation in agriculture. Hence, the study offers novel insights for policymakers at both macro and micro levels, advocating for improved regional collaboration, digital infrastructure, research and development, capacity building, and institutional reforms to foster technology-driven agricultural transformation in the ASEAN region.