Innovation Led Alliances: Theory and application to the GM Plant Industry

The objective of the present paper is to identify the determinants of the form of collaboration initiated between an upstream innovator and a downstream producer in order to incorporate a new input and commercialize an innovation consisting of a quality enhanced final product, with an empirical application to the GM plant industry. The choice of upstream firm between license, joint venture, merger or a subsidiary is modeled as a function of three parameters: degree of quality improvement engendered by the new input, the market share of the downstream producer and the capability of the downstream producer to incorporate the new input and commercialize it successfully. We also discuss the case where the downstream firm is a cooperative.

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149th EAAE Seminar ‘Structural change in agri-food chains: new relations between farm sector, food industry and retail sector’, Rennes, France, October 27-28, 2016

 Record created 2017-04-01, last modified 2018-01-23

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