Technology transfer as a mechanism for dynamic transformation in the food sector

Abstract

Traditional industrial sectors generally have been considered low technology (LT) industries according to the standard classification of manufacturing industries which is based on R&D intensity, i.e. R&D expenditure/total output. However, questions are being raised about the limitations imposed by this classification—for both academic research and policy design. LT firms over time can develop rich knowledge related to non R&D activities while simultaneously exploiting new and high technologies to develop new products and processes. Therefore, policies to support innovation should take account of the fact that LT sectors are an important component of the national innovation ecosystem. For instance, the food sector despite its relatively low formal R&D activity, has developed a significant knowledge base related to non-R&D activities. Also, technological change related to other sectors can affect the whole agro-food value chain, and create opportunities related to technological advancements in areas such as information and communication technologies, biotechnologies, nutrition, health-care, etc. In this paper, we investigate the impact of technology transfer on the business performance and competitiveness of young European food and beverages firms, using data from AEGIS—a large-scale survey. We explore whether firms which use technology transfer mechanisms exhibit better business and competitive performance than firms with less open strategies. Our findings contribute to ongoing discussion on the growth and innovation potential of traditional industries.