By: |
Rama, Ruth |
Abstract: |
Purpose. This research examines the possibility of food and beverage
(F&B)-processing multinational corporations serving as a viable conduit for
the international diffusion of technology. Methodology. This study utilizes
existing literature to analyse three potential avenues through which
technology transfer occurs from these corporations to host sectors: contract
farming, domestic collaboration for innovation, and spillover effects of
Foreign Direct Investment (FDI). Findings. In specific instances, these firms
might provide support to local innovators through financial assistance or
complementary resources. Additionally, they may actively facilitate technology
transfers to particular types of local partners and they may generate
demonstration effects. Nevertheless, the prevailing evidence consistently
indicates that the impact of FDI on the host sector is generally limited or
selective. Practical implications. The findings of this study cast doubt on
the overly optimistic views held by international organizations and host
governments regarding FDI in the food sector as a major source of cutting-edge
technology for host countries. The incentives offered to food and beverage
multinationals should be carefully calibrated to strike a balance between
acknowledging potential benefits to the sector's innovation system and
maintaining a realistic perspective on the actual outcomes. Originality. This
study combines and analyses three separate empirical lines of research in
parallel to offer factual elements for a policy debate. By integrating these
different research approaches, the study aims to contribute to a well-informed
discussion on relevant policy matters. |
Keywords: |
Innovation, internationalisation of R&D, FDI policy, food and beverage sector, contract farming, spillovers of knowledge, cooperation for innovation. |
JEL: |
F6 F63 F69 O3 O33 |
Date: |
2023–08–01 |
URL: |
http://d.repec.org/n?u=RePEc:pra:mprapa:118162&r=knm |