Resource Cost Ratio Approach to Estimate Innovations and Profitability – The Case of an Ornamental Fisheries Enterprise

This study attempted to analyze innovations and profitability of an ornamental enterprise (Rainbow Ornamentals, West Bengal) using Resource Cost Ratio (RCR) approach. The RCR for the selected ornamental enterprise was found to be 0.46 which indicated 0.46 unit worth of non-marketable resources was spent to produce one unit worth of marketable output. A sensitivity analysis was done to quantify the extent of advantage resulting from an innovative water re-circulatory system. The enterprise could increase social profitability by 0.10 units in terms of RCR because of its innovation. Further, private profit per unit of private cost and the social profit per unit of social cost in hypothetical case were found to be 0.48 and 0.22 against the 0.51 and 0.27 for baseline scenario, respectively. Overall, the study revealed that Rainbow Ornamentals as an enterprise is efficient in local resource management and innovations for producing profitable and socially desirable outputs.