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Innovation and integration in the agri-food industry

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  • Karantininis, Kostas
  • Sauer, Johannes
  • Furtan, William Hartley

Abstract

We deal with the link between innovation and market structure using the empirical example of the Danish agri-food industry. Vertical integration may resolve hold-up problems and here we test for the importance of vertical integration and networks on innovation. We further examine the effects of network relationships on innovation behaviour. We use data from an extensive survey of 444 Danish firms over two years, 2000 and 2005 to estimate a bootstrapped zero-inflated Poisson regression model. The first and most significant result is that organization matters. Further we find that vertical integration as well as contractual arrangements are significant determinants for firms' innovation behaviour. The direction of integration is important as well. Also, economies of size seem to play an important role. Similarly, the export orientation of the firm is a significant determinant of innovation whereas the sector the firm is operating in is not significant for its innovation behaviour.

Suggested Citation

  • Karantininis, Kostas & Sauer, Johannes & Furtan, William Hartley, 2010. "Innovation and integration in the agri-food industry," Food Policy, Elsevier, vol. 35(2), pages 112-120, April.
  • Handle: RePEc:eee:jfpoli:v:35:y:2010:i:2:p:112-120
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    References listed on IDEAS

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    Cited by:

    1. Jantke, Corina & Sauer, Johannes, 2015. "Innovationsaktivität Im Molkereisektor: Eine Analyse Auf Basis Internationaler Patentanmeldungen," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209251, German Association of Agricultural Economists (GEWISOLA).
    2. Tamini, Lota Dabio, 2012. "Optimal quality choice under uncertainty on market development," Working Papers 148589, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    3. Dries, Liesbeth & Pascucci, Stefano & Török, à ron & Tóth, József, 2014. "Keeping Your Secrets Public? Open Versus Closed Innovation Processes in the Hungarian Wine Sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 17(1).
    4. Bartolini, Fabio & Andreoli, Maria & Brunori, Gianluca, 2013. "Explaining the determinants of on-farm diversification: The case Study of Tuscany Region," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149903, Italian Association of Agricultural and Applied Economics (AIEAA).
    5. Briones, Roehlano M., 2013. "The Structure of Agricultural Trade Industry in Developing Countries," Discussion Papers DP 2013-15, Philippine Institute for Development Studies.
    6. Bartolini, Fabio & Latruffe, Laure & Viaggi, Davide, 2011. "Assessing the effect of the CAP on farm innovation adoption. An analysis in two French regions," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99594, European Association of Agricultural Economists.
    7. Trott, Paul & Simms, Chris, 2017. "An examination of product innovation in low- and medium-technology industries: Cases from the UK packaged food sector," Research Policy, Elsevier, vol. 46(3), pages 605-623.
    8. Martino, Gaetano & Frascarelli, Angelo, 2013. "Adaptation in Food Networks: Theoretical Framework and Empirical Evidences," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 4(1).
    9. Acosta, Manuel & Coronado, Daniel & Romero, Carlos, 2015. "Linking public support, R&D, innovation and productivity: New evidence from the Spanish food industry," Food Policy, Elsevier, vol. 57(C), pages 50-61.
    10. Manuel Toselli, 2017. "Knowledge sources and integration ties toward innovation. A food sector perspective," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 43-65, April.
    11. Johannes Sauer, 2011. "The Empirical Identification of Heterogenous Technologies and Technical Change," Post-Print hal-00768585, HAL.
    12. Michaela Trippl, 2011. "Low-Tech Innovation in a High-Tech Environment? The Food Industry in the Metropolitan Region of Vienna," ERSA conference papers ersa10p133, European Regional Science Association.
    13. Dries, Liesbeth & Pascucci, Stefano & Torok, Aron & Toth, Jozsef, 2012. "Open innovation in the Hungarian wine sector," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135785, European Association of Agricultural Economists.
    14. József TÓTH, 2013. "Trust – Networking – Innovation," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(1), pages 510-519, November.
    15. Maumbe, Blessing M. & Brown, Cheryl, 2013. "Entrepreneurial and Buyer-Driven Local Wine Supply Chains: Case Study of Acres of Land Winery in Kentucky," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 16(1).
    16. Toth, Jozsef & Dries, Liesbeth & Pascucci, Stefano, 2013. "Open or Not Open? (Open Innovation in the Hungarian Wine Industry)," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158850, Agricultural Economics Society.
    17. Bareille, François & Beaugrand, Florence & Duvaleix-Treguer, Sabine, 2016. "Objectives’ alignment between members and agricultural cooperatives," 149th Seminar, October 27-28, 2016, Rennes, France 244948, European Association of Agricultural Economists.
    18. Alarcón, Silverio & Sánchez, Mercedes, 2016. "Is there a virtuous circle relationship between innovation activities and exports? A comparison of food and agricultural firms," Food Policy, Elsevier, vol. 61(C), pages 70-79.
    19. Jozsef Toth & Liesbeth Dries & Stefano Pascucci, 2012. "Open Innovation Characters of the Hungarian wine Industry," MIC 2012: Managing Transformation with Creativity; Proceedings of the 13th International Conference, Budapest, 22–24 November 2012 [Selected Papers], University of Primorska, Faculty of Management Koper.
    20. repec:bla:jageco:v:68:y:2017:i:2:p:427-450 is not listed on IDEAS
    21. Aimilia Protogerou & Yannis D. Caloghirou & Glykeria Karagouni, 2014. "The relevance of the 'dynamic capabilities' perspective in low-tech sectors," Chapters,in: Knowledge-Intensive Entrepreneurship in Low-Tech Industries, chapter 7, pages 138-165 Edward Elgar Publishing.
    22. Roberto Vona & Nadia Di Paola, 2013. "Management dell’innovazione in agricoltura e relazioni di canale in una prospettiva teorica "grounded"," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2013(4), pages 83-102.
    23. repec:bla:jageco:v:68:y:2017:i:3:p:749-780 is not listed on IDEAS
    24. Ornella W. Maietta & Cristian Barra & Roberto Zotti, 2017. "Innovation and University-Firm R&D Collaboration in the European Food and Drink Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 749-780, September.
    25. Silverio Alarcón & Mercedes Sánchez, 2013. "External and Internal R&D, Capital Investment and Business Performance in the Spanish Agri-Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 654-675, September.

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