| Summary: | This case study examines the effect of deregulation and trade reform on South Africa's agriculture sector, which is highly dualistic consisting of a developed commercial sector and a subsistence farming sector. Deregulation and trade reform has led to substantial changes in innovation in the commercial agriculture sector, such as wine and fruit, leading to a large change in composition while innovation seems to have been more limited in subsistence agriculture, which lacks absorption capacity. Legal uncertainties related to land reform may also be a factor which can negatively affect innovation in the commercial farming sector. Keywords: innovation, deregulation, trade reform, South Africa, agriculture, wine, fruit, field crops, foreign investment, absorption capacity
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