Convergence and reorientation via open innovation: the emergence of nutraceuticals

Abstract

The use of networked organisational arrangements to conduct exchanges is one of the most distinctive features of high-tech research-intensive industries. Advances in biotechnology and genomics research have enabled a generic technology platform that has fuelled a more ‘open’ approach to innovation and learning. This relies on collaborations between networked partners and allows for the convergence and reorientation of traditional sectors. This paper lends support to the view that some technologies can trigger a higher system level innovation, that is, in addition to the inter-firm level, an inter-industrial and inter-institutional level convergence and re-orientation process. This paper explores how this phenomenon is being witnessed in the pharmaceutical and food sectors and fast becoming a dominant logic in the emerging nutraceuticals industry.

Keywords:

• technology management
• new product development
• knowledge management
• innovation strategy
• technology and innovation studies
• pharmaceutical industry

Acknowledgements

This research was funded by the ESPRC, UK Biobank and IBM Business Consulting services. The interpretations and conclusions in this paper are the authors’ and do not necessarily represent the funding organisations. An earlier version of this paper was presented at the British Academy of Management.

Notes

See Corporate Watch, ‘Functional foods: good for Monsanto's health’ (2000). Accessible at http://www.corporatewatch.org.uk/publications/GEBriefings/funcfoods.html (accessed 2004).

See www.nutraingredients.com/news/news-ng.asp?id=56814-unilever-gains-exclusive. Unilever gains exclusive rights to Phytopharm's hoodia extract; Nutraingredients USA (accessed 2007).