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Examining the Adoption of Product and Process Innovations in the Canadian Food Processing Industry

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  • Derek G. Brewin
  • Daniel C. Monchuk
  • Mark D. Partridge

Abstract

In this paper we study the factors associated with innovation in the food processing industry using a survey of Western Canadian food processors. Our primary motivation is to gain a better understanding of the mechanics of innovation related to the adoption of product and process innovation. In particular, we consider the jointness of ex post realizations of product and process innovations, and assess whether there are underlying differences that result from innovations developed inhouse versus those developed externally by a third party. Using a multivariate probit model, we find evidence of significant interrelationships between product and process innovations that are developed inhouse. These findings suggest that firms that conduct both process and product innovations inhouse are better able to enjoy complementarities that arise in the discovery process. We also find that firms are more likely to innovate in response to keeping pace with competitors. Dans le présent article, nous examinons les facteurs liés à l'innovation dans l'industrie de la transformation alimentaire, à l'aide d'un sondage effectué auprès des transformateurs agroalimentaires dans l'Ouest canadien. L'objectif principal vise à mieux comprendre les mécanismes de l'innovation liés à l'adoption de nouveaux produits et procédés. Nous examinons les liens entre les réalisations ex post de nouveaux produits et procédés, et nous évaluons s'il existe ou non des différences sous‐jacentes découlant du développement de produits à l'interne par rapport au développement de produits à l'externe par des tiers. À l'aide d'un modèle probit multivariable, nous montrons qu'il existe une interdépendance considérable entre les nouveaux produits et procédés élaborés à l'interne. Ces résultats autorisent à penser que les entreprises qui mettent au point de nouveaux produits et procédés à l'interne sont mieux en mesure de profiter des avantages complémentaires qu'engendre le processus de découverte. Les entreprises sont également plus enclines à innover pour suivre les concurrents.

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  • Derek G. Brewin & Daniel C. Monchuk & Mark D. Partridge, 2009. "Examining the Adoption of Product and Process Innovations in the Canadian Food Processing Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 75-97, March.
    • Handle: RePEc:bla:canjag:v:57:y:2009:i:1:p:75-97
    DOI: 10.1111/j.1744-7976.2008.01139.x
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    Cited by:

    1. Minghao Li & Stephan J. Goetz & Mark Partridge & David A. Fleming, 2016. "Location determinants of high-growth firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 97-125, January.
    2. Sizhong Sun & Sajid Anwar, 2018. "Product innovation in China’s food processing industries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 42(3), pages 492-507, July.
    3. Maciej Zastempowski & Szymon Cyfert, 2022. "The role of strategic innovation activities in creating Spanish agriculture companies' innovativeness," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(6), pages 230-238.
    4. Ngore, Patrick Muthee, 2010. "Evaluation of Factors Influencing Value Addition by Butchery Agribusinesses in Igembe North District, Kenya," Research Theses 134498, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Heather M. Stephens & Mark D. Partridge, 2011. "Do Entrepreneurs Enhance Economic Growth in Lagging Regions?," Growth and Change, Wiley Blackwell, vol. 42(4), pages 431-465, December.
    6. Brian Fabrègue & Léo J. Portal & Christopher Cockshaw, 2023. "Using smart people to build smarter: How smart cities attract and retain highly skilled workers to drive innovation (Belgium, Denmark, the Netherlands, Poland)," Smart Cities and Regional Development (SCRD) Journal, Smart-EDU Hub, vol. 7(1), pages 9-30, March.
    7. Pascal L. Ghazalian & Ali Fakih, 2017. "R&D and Innovation in Food Processing Firms in Transition Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 427-450, June.
    8. Cahill, Sean & Rich, Tabitha & Cozzarin, Brian, 2015. "Innovation in the Canadian Food Processing Industry: Evidence from the Workplace and Employee Survey," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(2), pages 1-22, May.
    9. Mark Vancauteren, 2018. "The effects of human capital, R&D and firm’s innovation on patents: a panel study on Dutch food firms," The Journal of Technology Transfer, Springer, vol. 43(4), pages 901-922, August.

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