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A change in the profile of food consumption is occurring because of the new context of demographic growth, the increase of income in developing economies, and urbanization. In Brazil, consumption patterns have trended from fresh to processed food and internal and external growth in demand has led to opportunities that require new and higher levels of technological innovation and associated managerial skill. The aim of this study was to evaluate the role of innovation on a key Brazilian food industry: wheat product markets. Results showed that while most firms did not innovate in the past year, new investments in R&D were important for innovation to occur compared to other factors such as the size of the company, the integration in supply chain, and the age of the company. These results demonstrate that innovation is not a random or unpredictable process, but a complex and diverse process that may be specific to each industry.

Wheat Industry: Which Factors Influence Innovation?