Examining the Adoption of Product and Process Innovations in the Canadian Food Processing Industry

Document Type

Article

Publication Date

3-1-2009

Department

Political Science, International Development, and International Affairs

Abstract

In this paper we study the factors associated with innovation in the food processing industry using a survey of Western Canadian food processors. Our primary motivation is to gain a better understanding of the mechanics of innovation related to the adoption of product and process innovation. In particular, we consider the jointness of ex post realizations of product and process innovations, and assess whether there are underlying differences that result from innovations developed inhouse versus those developed externally by a third party. Using a multivariate probit model, we find evidence of significant interrelationships between product and process innovations that are developed inhouse. These findings suggest that firms that conduct both process and product innovations inhouse are better able to enjoy complementarities that arise in the discovery process. We also find that firms are more likely to innovate in response to keeping pace with competitors.

Publication Title

Canadian Journal of Agricultural Economics-Revue Canadienne D Agroeconomie

Volume

57

Issue

1

First Page

75

Last Page

97

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