U.S. Agribusiness Companies and Product Innovation: Insights from a Choice Experiment Conducted with Agribusiness Executives

Product innovation generates short and long-term growth by attracting new customers while satisfying existing customers. This paper identifies factors influencing the selection of innovation projects and quantifies the tradeoffs which agribusiness managers make when selecting product innovations. A choice experiment approach is used to provide insight into agribusiness executive behavior. Our results indicate that executives prefer (in decreasing order of importance) projects with low risk of technical/regulatory failure, low relative market risk, short-term to market, in-house capability, and high sunk costs. Our results suggest that policy makers could stimulate open innovation with programs such as government sponsored research and cost-sharing.


Editor(s):
IFAMR, IFAMA
Issue Date:
Nov 01 2013
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN #: 1559-2448 (Other)
PURL Identifier:
http://purl.umn.edu/159663
Published in:
International Food and Agribusiness Management Review, Volume 16, Issue 4
Page range:
123-140
Total Pages:
18
JEL Codes:
Q00; Q13
Note:
The IFAMR is published quarterly by the International Food and Agribusiness Management Association. More info: www.ifama.org
Series Statement:
Volume 16
Issue 4




 Record created 2017-04-01, last modified 2017-08-22

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