Innovation and integration in the agri-food industry

Kostas Karantininis, Johannes Sauer, William Hartley Furtan

Research output: Contribution to journalArticlepeer-review


We deal with the link between innovation and market structure using the empirical example of the Danish agri-food industry. Vertical integration may resolve hold-up problems and here we test for the importance of vertical integration and networks on innovation. We further examine the effects of network relationships on innovation behaviour. We use data from an extensive survey of 444 Danish firms over two years, 2000 and 2005 to estimate a bootstrapped zero-inflated Poisson regression model. The first and most significant result is that organization matters. Further we find that vertical integration as well as contractual arrangements are significant determinants for firms' innovation behaviour. The direction of integration is important as well. Also, economies of size seem to play an important role. Similarly, the export orientation of the firm is a significant determinant of innovation whereas the sector the firm is operating in is not significant for its innovation behaviour. © 2009 Elsevier Ltd.
Original languageEnglish
Pages (from-to)112-120
Number of pages8
JournalFood Policy
Issue number2
Publication statusPublished - Apr 2010


  • Food industry
  • Innovation
  • Market structure
  • Networks
  • Vertical integration

Research Beacons, Institutes and Platforms

  • Sustainable Consumption Institute


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