Used as a key intermediate in the synthesis of pharmaceuticals and agrochemicals, particularly in the production of heterocyclic compounds. Its functional groups—cyano, hydroxy, and ester—allow for diverse chemical transformations, making it valuable in constructing complex molecules. Commonly employed in condensation reactions to form pyrazoles, isoxazoles, and other nitrogen-containing rings. Also utilized in the development of active ingredients in crop protection agents due to its reactivity and structural flexibility.