A patent analysis of global food and beverage firms: The persistence of innovation
We explore whether current innovation has an enduring effect on future innovative activity in large, global food and beverage (F&B) companies. We analyze a sample of 16,698 patents granted in the United States over the period 1977 to 1994 to 103 F&B firms selected from the world's largest F&B multinationals. We test whether patent time series are trend stationary or difference stationary in order to detect how large the autoregressive parameter is and how enduring the impact of past innovation in these companies is. We conclude that the patent series are not consistent with the random walk model. The null hypothesis of a unit root can be rejected at the 5% level when a constant and a time trend are considered. Both utility and design patent series are stationary around a constant and a time trend. Moreover, there is a permanent component in the patent time series. Thus, global F&B firms show a stable pattern of technological accumulation in which “success breeds success.” “Old” innovators are the ones to foster both important changes and new ways of packaging products among F&B multinationals. The effect of past innovation is almost permanent. By contrast, other potential stimuli to technological change have only transitory effects on innovation. Patterns of technological accumulation vary in specific F&B industries. Past experience in design is important in highly processed foods and beverages, but not in agribusinesses and basic foodstuffs. Patterns of technological accumulation are similar in both smaller multinationals|newcomers and large, established multinationals. [EconLit citations : O330, F230, L660] © 2002 Wiley Periodicals, Inc.
Volume (Year): 18 (2002)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lee, Junsoo & Huang, Cliff J. & Shin, Yongcheol, 1997. "On stationary tests in the presence of structural breaks," Economics Letters, Elsevier, vol. 55(2), pages 165-172, August.
- Freeman, Chris, 1994. "The Economics of Technical Change," Cambridge Journal of Economics, Oxford University Press, vol. 18(5), pages 463-514, October.
- G. N. Von Tunzelmann, 1998. "Localized Technological Search And Multi-Technology Companies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(2-3), pages 231-256.
- Peter C. B. Phillips & Zhijie Xiao, 1998.
"A Primer on Unit Root Testing,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 12(5), pages 423-470, December.
- Pari Patel & Keith Pavitt, 1991. "Large Firms in the Production of the World’s Technology: An Important Case of “Non-Globalisation”," Journal of International Business Studies, Palgrave Macmillan, vol. 22(1), pages 1-21, March.
- Malerba, Franco & Orsenigo, Luigi, 1999. "Technological entry, exit and survival: an empirical analysis of patent data," Research Policy, Elsevier, vol. 28(6), pages 643-660, August.
- Geroski, P. A. & Van Reenen, J. & Walters, C. F., 1997.
"How persistently do firms innovate?,"
Elsevier, vol. 26(1), pages 33-48, March.
- Tor Jakob Klette & Zvi Griliches, 1997.
"Empirical Patterns of Firm Growth and R&D Investment: A Quality Ladder Model Interpretation,"
188, Statistics Norway, Research Department.
- Klette, Tor Jakob & Griliches, Zvi, 2000. "Empirical Patterns of Firm Growth and R&D Investment: A Quality Ladder Model Interpretation," Economic Journal, Royal Economic Society, vol. 110(463), pages 363-87, April.
- Tor Jakob Klette & Zvi Griliches, 1998. "Empirical Patterns of Firm Growth and R&D Investment: A QuUality LadderModel Interpretation," NBER Working Papers 6753, National Bureau of Economic Research, Inc.
- Zvi Griliches & Tor Jakob Klette, 1999. "Empirical patterns of firm growth and R&D investment: a quality ladder model interpretation," IFS Working Papers W99/25, Institute for Fiscal Studies.
- Tor Jakob Klette & Zvi Griliches, 1997. "Empirical Patters of Firm Growth and R&D Investment: A Quality Ladder Model Interpretation," Harvard Institute of Economic Research Working Papers 1795, Harvard - Institute of Economic Research.
- Klette, T.J. & Griliches, Z., 1998. "Empirical Patterns of Firm Growth and R&D Investment: a Quality Ladder Model Interpretation," Memorandum 23/1998, Oslo University, Department of Economics.
- Tor Jakob Klette & Zvi Griliches, 1997. "Empirical Patterns of Firm Growth and R&D Investment: A Quality Ladder Model Interpretation," NBER Working Papers 5945, National Bureau of Economic Research, Inc.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
- Jan Fagerberg, 1987.
"A technology gap approach to why growth rates differ,"
Working Papers Archives
1987002, Centre for Technology, Innovation and Culture, University of Oslo.
- Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
- Banerjee, Anindya & Dolado, Juan J. & Galbraith, John W. & Hendry, David, 1993. "Co-integration, Error Correction, and the Econometric Analysis of Non-Stationary Data," OUP Catalogue, Oxford University Press, number 9780198288107, December.
- Rebecca Henderson, 1993. "Underinvestment and Incompetence as Responses to Radical Innovation: Evidence from the Photolithographic Alignment Equipment Industry," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 248-270, Summer.
- Acs, Zoltan J & Audretsch, David B, 1989. "Patents as a Measure of Innovative Activity," Kyklos, Wiley Blackwell, vol. 42(2), pages 171-80.
- R. E. Caves & M. E. Porter, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, Oxford University Press, vol. 91(2), pages 241-261.
- Brezis, Elise S & Krugman, Paul R & Tsiddon, Daniel, 1993. "Leapfrogging in International Competition: A Theory of Cycles in National Technological Leadership," American Economic Review, American Economic Association, vol. 83(5), pages 1211-19, December.
- Soete, Luc, 1987. "The impact of technological innovation on international trade patterns: The evidence reconsidered," Research Policy, Elsevier, vol. 16(2-4), pages 101-130, August.
- Archibugi, Daniele & Pianta, Mario, 1992. "Specialization and size of technological activities in industrial countries: The analysis of patent data," Research Policy, Elsevier, vol. 21(1), pages 79-93, February.
- Ruth Rama, 1996. "Empirical study on sources of innovation in international food and beverage industry," Agribusiness, John Wiley & Sons, Ltd., vol. 12(2), pages 123-134.
When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:18:y:2002:i:3:p:349-368. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.