IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v7y2000i11p743-748.html
   My bibliography  Save this article

Determinants of new product introductions in the US food industry: a panel-model approach

Author

Listed:
  • Claudia Roder
  • Roland Herrmann
  • John Connor

Abstract

Economic theory suggests that market structure variables influence technical change, growth and new product introductions. Based on a broad data set for new product introductions in various food industries, it is elaborated in this article how market structure variables affect innovative activities in the US food sector. It is different from earlier studies in the way that cross-sectional and time-series data are combined and panel data models are used in the econometric analysis. A major result is that new product introductions are driven by market structure variables and industry-specific characteristics, i.e. fixed effects. A significant determinant of new food product introductions is the concentration ratio which affects the number of innovations in a nonlinear form. The fixed-effects estimates reveal a U-type effect of concentration on innovations. Furthermore, the number of firms, the degree of existing product differentiation and the size of a market show a positive influence on the number of innovations. From a methodological point of view, plain OLS models yield biased results on the concentration-innovation linkage and on the relationship between the size of a market and innovations. Therefore, it is very important to include sector-specific characteristics as is done in the fixed-effects models.

Suggested Citation

  • Claudia Roder & Roland Herrmann & John Connor, 2000. "Determinants of new product introductions in the US food industry: a panel-model approach," Applied Economics Letters, Taylor & Francis Journals, vol. 7(11), pages 743-748.
    • Handle: RePEc:taf:apeclt:v:7:y:2000:i:11:p:743-748
    DOI: 10.1080/135048500421395
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/135048500421395&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/135048500421395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gerosky, P A & Pomroy, R, 1990. "Innovation and the Evolution of Market Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 38(3), pages 299-314, March.
    2. John M. Connor, 1981. "Food Product Proliferation: A Market Structure Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 607-617.
    3. Roland Herrmann, 1997. "The distribution of product innovations in the food industry: Economic determinants and empirical tests for Germany," Agribusiness, John Wiley & Sons, Ltd., vol. 13(3), pages 319-334.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Herrmann, Roland & Schröck, Rebecca, 2011. "Determinanten des Innovationserfolgs: eine Analyse mit Scannerdaten für den deutschen Joghurtmarkt," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 60(03), pages 1-16, August.
    2. Haimanti Bhattacharya & Robert Innes, 2016. "Concentration, Product Variety, and Entry-for-Merger: Evidence from New Product Introductions in the U.S. Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1360-1376.
    3. W. Bruce Traill & Matthew Meulenberg, 2001. "Innovation in the food industry," Agribusiness, John Wiley & Sons, Ltd., vol. 18(1), pages 1-21.
    4. Wittkopp, Antje, 2002. "Marktstruktur, Innovationsaktivität und Profitabilität der deutschen Ernährungswirtschaft: Das Beispiel Functional Food," FE Working Papers 0205, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    5. Theofanis Papageorgiou & Panayotis G. Michaelides & John G. Milios, 2011. "Technology and economic fluctuations in the US food sector (1958‐2006)," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(2), pages 140-164, January.
    6. Weiss, Christoph R. & Wittkopp, Antje, 2003. "Buyer Power and Innovation of Quality Products: Empirical Evidence from the German Food Sector," FE Working Papers 0307, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    7. Torben Schubert, 2010. "Marketing and Organisational Innovations in Entrepreneurial Innovation Processes and their Relation to Market Structure and Firm Characteristics," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(2), pages 189-212, March.
    8. Kevin T. Mcnamara & Christoph R. Weiss & Antje Wittkopp, 2004. "Market Success Of Premium Product Innovation: Empirical Evidence From The German Food Sector," World Scientific Book Chapters, in: George Baourakis (ed.), Marketing Trends For Organic Food In The 21st Century, chapter 8, pages 127-140, World Scientific Publishing Co. Pte. Ltd..
    9. Hartl, Jochen & Herrmann, Roland, 2006. "The Role of Business Expectations for New Product Introductions: A Panel Analysis for the German Food Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(2), pages 1-11, July.
    10. Kubitzki, Sabine & Anders, Sven M., 2005. "Branchenspezifische Besonderheiten im Innovationsverhalten des Ernährungsgewerbes: Eine empirische Analyse des Mannheimer Innovationspanels," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 54(02), pages 1-11.
    11. Juan C. PÉREZ-MESA & Emilio GALDEANO-GÓMEZ, 2010. "Agrifood cluster and transfer of technology in the Spanish vegetables exporting sector: the role of multinational enterprises," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(10), pages 478-488.
    12. Innes, Robert, 2008. "Entry for merger with flexible manufacturing: Implications for competition policy," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 266-287, January.
    13. Papageorgiou, Theofanis & Michaelides, Panayotis G. & Milios, John, 2009. "Economic Fluctuations, Cyclical Regularities and Technological Change: The U.S. Food Sector (1958–2006)," MPRA Paper 67115, University Library of Munich, Germany.
    14. de Guimarães, Julio Cesar Ferro & Severo, Eliana Andréa & Jabbour, Charbel Jose Chiappetta & de Sousa Jabbour, Ana Beatriz Lopes & Rosa, Ariane Ferreira Porto, 2021. "The journey towards sustainable product development: why are some manufacturing companies better than others at product innovation?," Technovation, Elsevier, vol. 103(C).
    15. Herrmann, Roland & Schröck, Rebecca, 2011. "Determinanten des Innovationserfolgs: eine Analyse mit Scannerdaten für den deutschen Joghurtmarkt," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 60(3).
    16. Karantininis, Kostas & Sauer, Johannes & Furtan, William Hartley, 2010. "Innovation and integration in the agri-food industry," Food Policy, Elsevier, vol. 35(2), pages 112-120, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hartl, Jochen & Herrmann, Roland, 2006. "The Role of Business Expectations for New Product Introductions: A Panel Analysis for the German Food Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(2), pages 1-11, July.
    2. Haimanti Bhattacharya & Robert Innes, 2016. "Concentration, Product Variety, and Entry-for-Merger: Evidence from New Product Introductions in the U.S. Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1360-1376.
    3. Herrmann, Roland & Schröck, Rebecca, 2011. "Determinanten des Innovationserfolgs: eine Analyse mit Scannerdaten für den deutschen Joghurtmarkt," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 60(03), pages 1-16, August.
    4. Michael Reksulak & William F. Shughart & Robert D. Tollison, 2008. "Innovation and the opportunity cost of monopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 619-627.
    5. Capps, Oral, 1986. "Changes in Domestic Demand for Food: Impacts on Southern Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(1), pages 25-36, July.
    6. Wilfred Dolfsma & Gerben Velde, 2014. "Industry innovativeness, firm size, and entrepreneurship: Schumpeter Mark III?," Journal of Evolutionary Economics, Springer, vol. 24(4), pages 713-736, September.
    7. Connor, John M & Peterson, Everett B, 1992. "Market-Structure Determinants of National Brand-Private Label Price Differences of Manufactured Food Products," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 157-171, June.
    8. Flaig, Gebhard & Stadler, Manfred, 1996. "On the dynamics of product and process innovations: A bivariate random effects probit model," Tübinger Diskussionsbeiträge 64, University of Tübingen, School of Business and Economics.
    9. Costa-Font, Montserrat & Revoredo-Giha, Cesar, 2017. "Rate of success of new dairy products in the UK: how important are health and sustainable claims?," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258615, Agricultural Economics Society.
    10. Lambertini, Luca & Poyago-Theotoky, Joanna & Tampieri, Alessandro, 2017. "Cournot competition and “green” innovation: An inverted-U relationship," Energy Economics, Elsevier, vol. 68(C), pages 116-123.
    11. Levy, Daniel & Young, Andrew T., 2021. "Promise, Trust and Betrayal: Costs of Breaching an Implicit Contract," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue forthcomi.
    12. Peters, Bettina & Riley, Rebecca & Siedschlag, Iulia & Vahter, Priit & McQuinn, John, 2014. "Innovation and Productivity in Services:Evidence from Germany, Ireland and the United Kingdom," Papers WP480, Economic and Social Research Institute (ESRI).
    13. Barry L. Bayus & William P. Putsis, Jr., 1999. "Product Proliferation: An Empirical Analysis of Product Line Determinants and Market Outcomes," Marketing Science, INFORMS, vol. 18(2), pages 137-153.
    14. Edward W. McLaughlin & Vithala R. Rao, 1988. "An exploratory modeling of the decision process of new product selection by supermarket buyers," Agribusiness, John Wiley & Sons, Ltd., vol. 4(2), pages 177-185.
    15. Nigel Driffield, 2001. "Inward investment, industry concentration and the speed of adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(2), pages 193-214, June.
    16. Ali, Jabir & Reed, Michael R. & Saghaian, Sayed H., 2021. "Determinants of product innovation in food and agribusiness small and medium enterprises: evidence from enterprise survey data of India," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(5), May.
    17. Blumberg, Boris F. & Pfann, Gerard A., 2015. "Roads Leading to Self-Employment: Comparing Transgenerational Entrepreneurs and Self-Made Start-Ups," IZA Discussion Papers 9155, Institute of Labor Economics (IZA).
    18. Fredericks, Peter J. & McLaughlin, Edward W., 1992. "New Product Procurement: A Summary of Buying Practices and Acceptance Criteria at U.S. Supermarket Chains," Research Bulletins 123087, Cornell University, Department of Applied Economics and Management.
    19. Lohr, Luanne, 1998. "Welfare Effects Of Eco-Label Proliferation: Too Much Of A Good Thing?," Faculty Series 16642, University of Georgia, Department of Agricultural and Applied Economics.
    20. William James Adams & Bruno Crépon & David Encaoua, 1992. "Choix technologiques et stratégies de dissuasion d'entrée," Économie et Prévision, Programme National Persée, vol. 102(1), pages 27-36.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:7:y:2000:i:11:p:743-748. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.