Technological innovation drivers in rural small food industries in Iran
Faculty of Applied Economics
Faculty of Law
New York, N.Y.
Journal of international food and agribusiness marketing. - New York, N.Y.
, p. 68-83
The first step in devising the best incentives to support innovation is to investigate factors that affect the development of innovations. This article contributes to exploring such factors in small food industries in the rural areas of Tehran province, Iran. Using a census sampling method, 111 managers of 60 active firms were interviewed. The results showed that in general the level of technological innovation is low in the studied firms. The managers do not find the technological changes successful in bringing benefit to their firms. Even though correlation analysis indicated a complex association matrix between independent variables, only the firm's capacity of production was associated with technological innovation as a dependent variable. Furthermore, the regression analysis revealed that factors which influence technological innovation are the firm's age, formal research and development, fixed capital, and capacity of production. The results of this study were used to derive practical suggestions for managers and policymakers to increase technological innovation in the studied industry