Drivers of innovation in Italy: food versus pharmaceutical industry

Purpose – The purpose of this paper is twofold: first, it aims to investigate how internal and external drivers affect innovation in the Italian food industry. Second, the authors are interested to understand to what extent these drivers are industry specific, and therefore, they are contrasted against those relevant for the pharmaceutical industry in Italy according to the increasing growth of cross-industry innovation between these two sectors. The paper aims, thus, to shed light on the differences between food and pharmaceutical industries in terms of innovation drivers to understand potential precursors of emerging industry convergence. Design/methodology/approach – Both probit and bivariate probit models are estimated, using data from the Italian Community Innovation Survey, in order to provide empirical evidence on drivers affecting innovation in the food and pharmaceutical industries. Findings – The innovation activity of Italian food and pharmaceutical companies strongly relies on the presence of ...

[1]  S. Bröring,et al.  The emerging research landscape on bioeconomy: What has been done so far and what is essential from a technology and innovation management perspective? , 2015 .

[2]  J. Leker,et al.  The Front End of Innovation in an Era of Industry Convergence: Evidence from Nutraceuticals and Functional Foods , 2006 .

[3]  Christopher Lettl,et al.  User-oriented innovation in the food sector: Relevant streams of research and an agenda for future work , 2008 .

[4]  A. Coppola,et al.  Product and Process Innovation in the Italian Food Industry , 2010 .

[5]  James A. Young,et al.  Market orientation of value chains: A conceptual framework based on four case studies from the food industry , 2005 .

[6]  J.-C. Spender,et al.  Industry recipes : an enquiry into the nature and sources of managerial judgement , 1989 .

[7]  N. Hardy.  Future innovations in food and drinks to 2015 : NPD, trend convergence and emerging growth opportunities , 2009 .

[8]  S. Shane,et al.  Opportunities and Entrepreneurship , 2003 .

[9]  Klaus Menrad,et al.  Innovations in the food industry in Germany , 2004 .

[10]  G. D. Stefano,et al.  Technology Push and Demand Pull Perspectives in Innovation Studies: Current Findings and Future Research Directions , 2012 .

[11]  Warren Bower.  New directions , 1937 .

[12]  B. Nooteboom.  Learning and Innovation in Organizations and Economies , 2000 .

[13]  J. Stanley Metcalfe,et al.  Innovation in Pharmaceuticals: Perspectives on the Co-ordination, Combination and Creation of Capabilities , 2002, Technol. Anal. Strateg. Manag..

[14]  A. Nerkar,et al.  Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry , 2001 .

[15]  S. Zahra,et al.  Absorptive Capacity: A Review, Reconceptualization, and Extension , 2002 .

[16]  Fabian Capitanio,et al.  Indications for drivers of innovation in the food sector , 2009 .

[17]  Paul L. Robertson,et al.  New wine in old bottles: Technological diffusion in developed economies , 2007 .

[18]  T. Minshall,et al.  How do large multinational companies implement open innovation , 2011 .

[19]  M. Nieto,et al.  The importance of diverse collaborative networks for the novelty of product innovation , 2007 .

[20]  T. Johnsen.  Supplier involvement in new product development and innovation: Taking stock and looking to the future , 2009 .

[21]  E. Schein.  Organizational Culture and Leadership , 1991 .

[22]  C. Köhler,et al.  Selective search, sectoral patterns, and the impact on product innovation performance , 2012 .

[23]  S. Bröring,et al.  Value‐creation in new product development within converging value chains: An analysis in the functional foods and nutraceutical industry , 2008 .

[24]  Mohan V. Tatikonda,et al.  Product Technology Transfer in the Upstream Supply Chain , 2003 .

[25]  Marian Garcia Martinez,et al.  INNOVATION IN THE SPANISH FOOD AND DRINK INDUSTRY , 2000 .

[26]  O. Gassmann,et al.  Creative Imitation: Exploring the Case of Cross-Industry Innovation , 2010 .

[27]  R. Veugelers,et al.  R&D Cooperation between Firms and Universities: Some Empirical Evidence from Belgian Manufacturing , 2003 .

[28]  Werner Hölzl,et al.  Is the R&D behaviour of fast-growing SMEs different? Evidence from CIS III data for 16 countries , 2008 .

[29]  O. W. Maietta,et al.  Determinants of university–firm R&D collaboration and its impact on innovation: A perspective from a low-tech industry , 2015 .

[30]  Á. Triguero,et al.  Differences in Innovation Between Food and Manufacturing Firms: An Analysis of Persistence , 2013 .

[31]  Josep-Maria Arauzo-Carod,et al.  Sources of innovation and industry–university interaction: Evidence from Spanish firms , 2008 .

[32]  Edward Shih-Tse Wang.  Effect of food service-brand equity on consumer-perceived food value, physical risk, and brand preference , 2015 .

[33]  Bart Nooteboom,et al.  Optimal cognitive distance and absorptive capacity , 2007 .

[34]  Klaus Menrad,et al.  Market and marketing of functional food in Europe , 2003 .

[35]  Holger Schiele.  How to distinguish innovative suppliers? Identifying innovative suppliers as new task for purchasing , 2006 .

[36]  Y. Wei,et al.  Making sense of a market information system for superior performance: The roles of organizational responsiveness and innovation strategy , 2011 .

[37]  K. Pavitt.  Sectoral Patterns of Technical Change : Towards a Taxonomy and a Theory : Research Policy , 1984 .

[38]  Claudia Schmiedeberg,et al.  Complementarities of innovation activities: An empirical analysis of the German manufacturing sector , 2008 .

[39]  Klaus G. Grunert,et al.  Why did we make that cheese? An empirically based framework for understanding what drives innovation activity , 2000 .

[40]  S. Bröring.  Developing innovation strategies for convergence - is 'open innovation' imperative? , 2010, Int. J. Technol. Manag..

[41]  F. Malerba.  Sectoral Systems of Innovation: Concepts, Issues and Analyses of Six Major Sectors in Europe , 2009 .

[42]  George J. Avlonitis,et al.  Product innovativeness and performance: a focus on SMEs , 2008 .

[43]  Bruce Tether,et al.  Beyond industry–university links: Sourcing knowledge for innovation from consultants, private research organisations and the public science-base , 2008 .

[44]  Mario Pianta,et al.  Firm Size and Innovation in European Manufacturing , 2008 .

[45]  Barbara Bigliardi,et al.  Models of adoption of open innovation within the food industry , 2013 .

[46]  Paul Matthyssens,et al.  Value innovation in the functional foods industry: Deviations from the industry recipe , 2008 .

[47]  What Can CIS Data Tell Us about Technological Regimes and Persistence of Innovation? , 2012 .

[48]  R. Katila.  New Product Search Over Time: Past Ideas in Their Prime? , 2002 .

[49]  John M. Grigor,et al.  Functional food product development – Opportunities and challenges for food manufacturers , 2013 .

[50]  G. Shiri,et al.  Bridge and redundant ties in networks: the impact on innovation in food SMEs , 2015 .

[51]  A. Banterle,et al.  Agri-food Competitive Performance in EU Countries: A Fifteen-Year Retrospective , 2015 .

[52]  Ruth M.W. Yeung,et al.  Food safety risk: consumer perception and purchase behaviour , 2001 .

[53]  Abhishek Gupta,et al.  Convergence and reorientation via open innovation: the emergence of nutraceuticals , 2010, Technol. Anal. Strateg. Manag..

[54]  Terry G. Seaks,et al.  A Hausman test for a dummy variable in probit , 1998 .

[55]  Klaus G. Grunert,et al.  A framework for analysing innovation in the food sector. , 1997 .

[56]  Jacques Viaene,et al.  Determinants of product and process innovation in small food manufacturing firms , 2004 .

[57]  J. Schumpeter,et al.  The Theory of Economic Development , 2017 .

[58]  T. Bech-Larsen,et al.  Functional foods in Europe: consumer research, market experiences and regulatory aspects , 2007 .

[59]  Bettina Peters,et al.  Innovation and Productivity Across Four European Countries , 2006 .

[60]  István Siró,et al.  Functional food. Product development, marketing and consumer acceptance—A review , 2008, Appetite.

[61]  David Weir,et al.  Industry and recipes: An enquiry into the nature and sources of managerial judgement , 1990 .

[62]  Khaleel Malik,et al.  The Growth and Management of R&D Outsourcing: Evidence from UK Pharmaceuticals , 2008 .

[63]  S.W.F. Omta,et al.  Analysing indicators of industry convergence in four probiotics innovation value chains , 2014 .

[64]  Wim Verbeke,et al.  Consumer-driven definition of traditional food products and innovation in traditional foods. A qualitative cross-cultural study , 2009, Appetite.

[65]  Ruerd Ruben,et al.  Agro-food chains and networks for development: issues, approaches and strategies , 2006 .

[66]  Oliver Gassmann,et al.  Opening Up the Solution Space: The Role of Analogical Thinking for Breakthrough Product Innovation , 2008 .

[67]  Allan Afuah,et al.  Innovation Management: Strategies, Implementation, and Profits , 1997 .

[68]  B. Kogut,et al.  Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology , 1992 .

[69]  Third Edition,et al.  THE MEASUREMENT OF SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES: PROPOSED GUIDELINES FOR COLLECTING AND INTERPRETING INNOVATION DATA , 2005 .

[70]  Laura B. Cardinal.  Technological Innovation in the Pharmaceutical Industry: The Use of Organizational Control in Managing Research and Development , 2001 .

[71]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[72]  Wim M.F. Jongen,et al.  New insights into consumer-led food product development , 2006 .

[73]  M. Knudsen.  The Relative Importance of Interfirm Relationships and Knowledge Transfer for New Product Development Success , 2007 .

[74]  Ellen Enkel,et al.  Why Do Experts Contribute in Cross‐Industry Innovation? A Structural Model of Motivational Factors, Intention and Behavior , 2016 .

[75]  S. Omta,et al.  Innovation drivers and barriers in food processing , 2009 .

[76]  F. Malerba.  Sectoral systems of innovation and production , 2002 .

[77]  Xavier Gellynck,et al.  External sources for innovation in food SMEs , 2015 .