Agricultural Innovation System (AIS) encompasses both the facets of technology development and technology dissemination. However, much concentration and efforts were exerted on innovation and technology development part while the other part i.e. innovation dissemination system was less attended. This article analyses spatial innovation dispersion and also level of innovation development across the crop sector. The study observed that paddy was the most innovation prone crop. Further, deeper insight revealed state wise adoption pattern of improved technology and innovations by estimating inefficiency through stochastic frontier approach. For the states viz., Gujarat, Himachal Pradesh, Odisha and Karnataka adoption laggardness was observed although the state effect was found conducive for paddy cultivation. It was also noticed that the role of price and wealth-based variables were insignificant in determining adoption pattern in short run, while institutional factors and farmers’ linkage was proved to be decisive. The study provides basic understanding and framework to direct further investigation in the field of innovation and diffusion.