Inter‐industry technology flows in the US food‐processing industries

Abstract The study examines the origins of technology important to improving productivity in the food‐processing industries. Technology flows were measured both by patents in patent classes closely identified with six food industries, and by a sample of significant food‐processing innovations. These data are consistent with the hypothesis that interindustry technology flows are the most significant determinant of productivity improvements in the food industries. These findings solve the enigma that the food‐processing industries have enjoyed rapid improvements in productivity despite making very modest investments in research and development.