Indications for drivers of innovation in the food sector

Abstract

PurposeThe purpose of the paper is to analyse the main dynamics of the Italian food system, focusing on the relationships between the inclination to innovate and a set of firm characteristics.Design/methodology/approachThe empirical analysis includes two steps. In the first, principal component analysis is carried out in order to identify factors that can explain the features that differentiate Italian food firms. In the second phase the role of such factors on innovation behaviour is quantified by means of a logit model.FindingsThe empirical analysis showed that, in the Italian food sector, innovation adoption follows different patterns when product or process innovation is considered. In particular, the probability of introducing product innovation is influenced by the quality of human capital, the geographical context and, to a lesser extent, the age of the firm.Research limitations/implicationsThe research is restricted in so far as it only considers the Italian food sector. Because the data survey is representative only at the level of the manufacturing industry as a whole and excludes firms with fewer than ten employees, the analysis for the food sector can only be indicative.Practical implicationsThis paper provides a useful source of knowledge on the innovative behaviour of Italian firms. This highlights the need to provide for diversified intervention strategies to stimulate and enforce innovation in the Italian food sector.Originality/valueThe research provides some initial insight into firm perspectives in the role of innovations to enhance firms’ market competitiveness.