Investing in agricultural research and development is central to sustainable growth. Research shows32 that R&D-driven innovation is a primary engine of agricultural productivity, thus raising yields, lowering production costs, and enabling climate-resilient practices—while delivering very high social returns. These productivity gains translate directly into poverty reduction and improved food security in rural areas, catalyzing broader structural transformation and more inclusive growth. Sustained public R&D funding, targeted innovation funds, and complementary policies (extension, markets, irrigation) are important to repurposed towards innovations that raise the total productivity of the sector. Our simulations show that R&D investments in wheat, livestock, or dairy can significantly increase the output and incomes for commodity on the whole agriculture sector in Punjab. For instance, if the TFP of wheat is increased, the be the increase in farmers income. This is the highest amongst all sub-sectors and shows that the importance of wheat for the economy cannot be ignored. Similarly, the second highest gains can be achieved through close the productivity gap. Public investment in competitive grants, Agri R&D Fund to support consistent investments, international linkages with research institutes and increased budget for extension services can boost the productivity of farms. 32 World Bank. 2020). Harvesting Prosperity Technology and Productivity Growth in Agriculture is raised from 1.0 (base) to 1.5 (higher scenario)