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Evolution of innovation and production supply chains: the case of microalgae-based β-carotene

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  • Ruslana Rachel Palatnik
  • Michael Borowitzka
  • Gal Hochman
  • David Zilberman

Abstract

Establishing new bio-based sectors requires effective implementation of innovation and production supply chains, often competing with established synthetic technologies. Our analytical model conceptualizes the competition between an incumbent industry and a competitive fringe, each producing differentiated products. Although motivated by the β-carotene case, the model is versatile and applicable to other contexts involving novel products entering markets dominated by established technologies. Developed by university researchers and commercialized by start-ups, natural β-carotene was eventually integrated into major synthetic corporations. Initially niche and costly, it gained market competitiveness through innovation and expanded applications, driving technological advancements and significantly benefiting the broader algae-based industry.

Suggested Citation

  • Ruslana Rachel Palatnik & Michael Borowitzka & Gal Hochman & David Zilberman, 2025. "Evolution of innovation and production supply chains: the case of microalgae-based β-carotene," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 52(3), pages 591-616.
  • Handle: RePEc:oup:erevae:v:52:y:2025:i:3:p:591-616.
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    File URL: http://hdl.handle.net/10.1093/erae/jbaf019
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