Measuring the intensity of innovation in the Brazilian food sector: a DEA-Malmquist approach

Resumen

Purpose – This study aims to measure the intensity of innovation in the Brazilian food sector and compares
it to other manufacturing sectors in the country.
Design/methodology/approach – The authors used economic and financial data provided by the
annual survey of industry [Pesquisa Industrial Anual (PIAs), in Portuguese] and other supporting data
provided by the survey of innovation [Pesquisa de Inovação (PINTEC), in Portuguese] and the classification
of technology intensity (TI) proposed by the Organization for Economic Co-operation and Development. The
authors subsequently applied the Malmquist index in addition to the data envelopment analysis to measure
innovation.
Findings – The results reveal that the Brazilian food sector is classified as a sector with low TI and
investment in research and development (R&D), which represents one of the lowest rates when compared to
other sectors. Thus, the Brazilian food sector is far from achieving its full potential. Nevertheless, the authors
noticed that the sugar refinery industry showed an evolution in its technology frontier and presented a
frequency of innovation similar to the average of high-tech industries.
Originality/value – This study contributes to the debate on innovation in the food sector, emphasizing the
need to accomplish higher investments in R&D to increase the productivity of the sector.