128 A. N. Tanner and N. Strøm-Andersen
nature of ABP, followed by a presentation of the industrial characteristics in
the two countries in focus for this study, namely Denmark and Norway.
Finally, we present the key institutional framework that guides the behaviour
of firms in this sector before analysing how meat processing and ABP companies act within these changing settings. Section 7.4 discusses and concludes
the main findings in relation to the questions raised in the Introduction.
7.2 Theoretical background and approach
The chapter draws on the conceptual understanding outlined in Chapter 3 that
sees innovation as key for the transformative changes towards a circular bioeconomy. It builds on a systemic and evolutionary understanding of socioeconomic and socio- technical systems, and their change processes. Sectors such
as the meat- processing and ABP industry are formed by a set of activities that
are unified by related product groups and share a common knowledge base.
Sectoral innovation systems such as the meat- processing and ABP industry
are constituted by different elements such as actors (firms, universities,
research institutes, NGOs, consumers, policy- and lawmakers, etc.), knowledge and learning processes, technologies, inputs and demand, networks and
institutions (Malerba, 2002). The elements of the system co- evolve over time,
resulting in processes of change that enable the transformation of the system.
Moreover, rates and types of innovation differ greatly across sectors depending on the level of technological development, institutional settings, market
opportunities and processes of selection (Malerba, 2005a).
Taking a systemic perspective implies focusing on the dynamics of sectors
or industries, meaning how constituting elements co- evolve over time, rather
than static comparisons of industry structures and their performance at a given
point in time. In particular, the explanatory focus is on factors and mechanisms that drive these change processes; in other words, it entails understanding the laws of motion for a specific industry.
Furthermore, characteristic for the systemic perspective is its focus on
interdependencies and links between related industries. Boundaries of sectoral
systems are not fixed but rather change over time. In particular, for the food
industry, the vertical links and coordination between different production
activities or nodes in the value chain have been shown to play a significant
role in the innovative behaviour of firms (Karantininis, Sauer & Furtan,
2010). Historically, the hierarchical market structure of the food industry has
often been explained by a relatively weak appropriability regime (Peneder,
2010), meaning the possibility for protecting knowledge and innovations
from imitators is low. However, in pace with an increasing innovative
behaviour, the market structure of the industry changes, which results in a
movement towards vertical integration upstream in the value chain (Karantininis et al., 2010).
Finally, in a sectoral innovation system perspective, institutions play a key
role in shaping input and demand, as well as the interactions between market
nature of ABP, followed by a presentation of the industrial characteristics in
the two countries in focus for this study, namely Denmark and Norway.
Finally, we present the key institutional framework that guides the behaviour
of firms in this sector before analysing how meat processing and ABP companies act within these changing settings. Section 7.4 discusses and concludes
the main findings in relation to the questions raised in the Introduction.
7.2 Theoretical background and approach
The chapter draws on the conceptual understanding outlined in Chapter 3 that
sees innovation as key for the transformative changes towards a circular bioeconomy. It builds on a systemic and evolutionary understanding of socioeconomic and socio- technical systems, and their change processes. Sectors such
as the meat- processing and ABP industry are formed by a set of activities that
are unified by related product groups and share a common knowledge base.
Sectoral innovation systems such as the meat- processing and ABP industry
are constituted by different elements such as actors (firms, universities,
research institutes, NGOs, consumers, policy- and lawmakers, etc.), knowledge and learning processes, technologies, inputs and demand, networks and
institutions (Malerba, 2002). The elements of the system co- evolve over time,
resulting in processes of change that enable the transformation of the system.
Moreover, rates and types of innovation differ greatly across sectors depending on the level of technological development, institutional settings, market
opportunities and processes of selection (Malerba, 2005a).
Taking a systemic perspective implies focusing on the dynamics of sectors
or industries, meaning how constituting elements co- evolve over time, rather
than static comparisons of industry structures and their performance at a given
point in time. In particular, the explanatory focus is on factors and mechanisms that drive these change processes; in other words, it entails understanding the laws of motion for a specific industry.
Furthermore, characteristic for the systemic perspective is its focus on
interdependencies and links between related industries. Boundaries of sectoral
systems are not fixed but rather change over time. In particular, for the food
industry, the vertical links and coordination between different production
activities or nodes in the value chain have been shown to play a significant
role in the innovative behaviour of firms (Karantininis, Sauer & Furtan,
2010). Historically, the hierarchical market structure of the food industry has
often been explained by a relatively weak appropriability regime (Peneder,
2010), meaning the possibility for protecting knowledge and innovations
from imitators is low. However, in pace with an increasing innovative
behaviour, the market structure of the industry changes, which results in a
movement towards vertical integration upstream in the value chain (Karantininis et al., 2010).
Finally, in a sectoral innovation system perspective, institutions play a key
role in shaping input and demand, as well as the interactions between market