Convergence in functional food: technological diversification and path-dependent learning

Functional food (FF) has recently become an emerging trend due to the change in life-style and demand for health-promoting food. This trend has opened up new market opportunities, which are not limited to only firms in the food sector. It pertains the characteristics of an industrial convergence, which involves knowledge and capabilities across an industrial border to converge. This work uses the example of Japanese food firms that have participated in FF in Japan (alias FOSHU) to explore the process of learning in food firms concerning FF development. By analysing the patenting activities, firms' competence and patterns of learning were drawn. The results indicate the importance of core competence, technological diversification and their effects on path-dependent learning pattern.