To meet global demands towards food security, safety as well as sustainable agriculture and food systems innovative approaches are inevitable. Despite the growing body of literature in both innovation research and in values and aims, what has been explored to a lesser extent is the bridging link between these areas. This study represents a first step in addressing this relationship. Policy- and decision-makers foster sustainable innovation in agriculture, since on-farm innovation and innovation adoption have attracted their attention as a means of enhancing competitiveness as well as socially and environmentally benign farming also benefiting rural areas. By using a negative binomial model we explore the relationship between farmers' innovativeness and those values and aims which guide farmers' farm-management decisions as well as other farm/farmer characteristics. Based on a sample of 174 Austrian farmers agricultural education is found to be an essential driver of innovativeness. Regarding the different values we find that self-direction and hedonistic values, in contrast to achievement and economic, are associated with more innovative capabilities. In conclusion, we see a need to foster self-direction and hedonistic narratives in policy and extension service, together with reducing the focus on an economic angle to promote farmers' innovation capabilities.

Chapter 10, "Diversification patterns at the regional level and their relationship to regional knowledge capabilities: differences between advanced and less favoured regions" (Andreas Reinstaller and Fabian Unterlass) analyses the relationship between regional capabilities to generate and apply knowledge and changes in industrial specialisation in advanced and less-favoured regions. The results suggest that local technological search and learning reinforce existing specialisation patterns, whereas educational investments weaken path dependence. They reduce the importance of local capabilities to generate comparative advantages and allow tapping into new technologies or industries fostering diversification. Regions with higher educational attainment levels tend also to be more specialised in high-end markets. The educational system therefore plays a key role in diversification processes and should be a constitutive element of S3 policies.