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Firm, market, and regulatory factors influencing innovation and commercialization in Canada's functional food and nutraceutical sector

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  • Deepananda Herath

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, N1G 2W1, Ontario, Canada)

  • John Cranfield

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, N1G 2W1, Ontario, Canada)

  • Spencer Henson

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, N1G 2W1, Ontario, Canada)

  • David Sparling

    (Department of Food, Agricultural and Resource Economics, University of Guelph, Guelph, N1G 2W1, Ontario, Canada)

Abstract

Factors influencing the development and commercialization of functional food and nutraceutical (FFN) products are explored. Count data models are developed to relate firm, market, and regulatory covariates to the number of FFN product lines firms have under development, on the market, and in total. Canadian firm-level innovation data were taken from Statistics Canada (2003) Functional Food and Nutraceutical Survey. Firms involved in product development|scale-up had more product lines in total and on the market. Firms with a strong and positive perception of the impact of regulatory reform related to generic health claims and harmonization of Canadian regulations with U.S. regulations had fewer product lines in total and on the market. Firms with more positive perceptions of the business impact of structure and function health claims had more product lines on the market. One implication of the study is the importance of developing policies and reforming regulations which better enable use of generic health claims on FFN products. Further, policies which better enable or foster development|scale-up of product lines would increase the Canadian FFN sector's ability to develop new products. [EconLit: O130, L500, Q180]. © 2008 Wiley Periodicals, Inc.

Suggested Citation

  • Deepananda Herath & John Cranfield & Spencer Henson & David Sparling, 2008. "Firm, market, and regulatory factors influencing innovation and commercialization in Canada's functional food and nutraceutical sector," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 207-230.
    • Handle: RePEc:wly:agribz:v:24:y:2008:i:2:p:207-230
    DOI: 10.1002/agr.20156
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    References listed on IDEAS

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    Cited by:

    1. Jill E. Hobbs & Stavroula Malla & Eric K. Sogah & May T. Yeung, 2014. "Regulating Health Foods," Books, Edward Elgar Publishing, number 15768.
    2. Stojanovic, Zaklina & Ognjanov, Galjina & Dragutinovic-Mitrovic, Radmila, 2010. "Nutritional & Health Claimed Products Market Development in Serbia: Exploration of Findings Obtained from In Depth Interviews," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116446, European Association of Agricultural Economists.
    3. Stojanović Žaklina & Dragutinović-Mitrović Radmila, 2012. "The Serbian Functional Food Market: Does Regulation Make A Difference?," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(193), pages 53-70, April- Ju.

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