The business environment in the food and Beverage industry is changing rapidly with alteration in innovation needs of the company and how they codify innovation. The food and Beverage industry is viewed as a low-tech industry. However, the good news is the Food & Beverage industry is adopting the open innovation.
The paradigm of open innovation is of interest to various food sectors because of their many chain and network ties. Innovation in the food sector is gradual rather than radical, mostly comprising improvements or alteration of existing products. The knowledge useful for the food firm originates in the multiple and technological sector.
Procter and Gamble (P&G), one of the first firms to engage in OI, was able to increase the prosperity of its products by 50% and the efficiency of R&D by 60%.
Products that food firms developed in open innovation networks performed better than products developed entirely in-house, both in terms of return on investment – at the market introduction and in the long run – and in terms of survival.
Open innovation works like a lever for a firm’s capacities. The reports reveal that the soft drink is the most innovative food sector in Europe. The soft drink sector is the leader in innovation in 2014, pushing dairy products to second place.