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Disentangling Innovation in Small Food Firms: The role of External Knowledge, Support, and Collaboration

Author

Listed:
  • Wixe, Sofia

    (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Sweden)

  • Nilsson, Pia

    (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Swede)

  • Naldi, Lucia

    (Centre for Family Enterprise and Ownership (CeFEO ), Jönköping International Business School, Sweden)

  • Westlund, Hans

    (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, & KTH Royal Institute of Technology, Sweden)

Abstract

This paper applies unique survey data on innovation and external interaction of small food producers in Sweden. The overall purpose is to test if firms that are more engaged in external interaction are more innovative. To disentangle innovativeness beyond new goods and services, innovation is measured as new processes, new markets, new suppliers, new ways of organization, and new distributors. Findings point to a positive relationship between firm innovation and external interaction, both in terms of collaboration, external knowledge and support from regional actors. In particular, collaboration regarding transports and sales is shown to enhance most types of innovation. Product and process innovation benefit from external knowledge from extra-regional firms as well as regional support from the largest firm. Findings suggest that current innovation policies can improve their efficiency by increasing their flexibility to enable tailor-made innovation policies at the local level.

Suggested Citation

  • Wixe, Sofia & Nilsson, Pia & Naldi, Lucia & Westlund, Hans, 2017. "Disentangling Innovation in Small Food Firms: The role of External Knowledge, Support, and Collaboration," Working Paper Series in Economics and Institutions of Innovation 446, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0446
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    References listed on IDEAS

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    Cited by:

    1. Marcello Stanco & Concetta Nazzaro & Marco Lerro & Giuseppe Marotta, 2020. "Sustainable Collective Innovation in the Agri-Food Value Chain: The Case of the “Aureo” Wheat Supply Chain," Sustainability, MDPI, vol. 12(14), pages 1-14, July.
    2. Soriano, Franklin A. & Villano, Renato A. & Fleming, Euan M. & Battese, George E., 2018. "What’s driving innovation in small businesses in Australia? The case of the food industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(1), October.

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    More about this item

    Keywords

    Innovation; collaboration; food industry; rural regions;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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