Knowledge sources and integration ties toward innovation. A food sector perspective

The paper analyzes the determinants of product and process innovation in food-manufacturing sector with particular focus on knowledge sources and integration ties. By bridging together the economic and management literature, it estimates the impact of demand-pull and technology-push, along with the effect of being either a parent, subsidiary or associate company, on the probability of introducing product and process innovation. Using data from the community innovation survey on spanish food manufacturing firms, the econometric results show that demand-pull affects the probability of achieving product innovation while technology-push the probability of both product and process innovation. In regards to integration ties, associate companies are associated to higher probability of achieving process innovation because of the knowledge spillover from the parent company. With respect to the latter, there is no evidence of reverse knowledge flow.