Combining different brands of in-house knowledge: technological capabilities in food, biotechnology, chemicals and drugs in agri-food multinationals

This article explores through structural equation modeling whether the level of a food and beverage multinational's (FBM) technical capacities in food, biotechnology and drugs predicts the level of its technical capacities in chemicals. Patent analysis for 90 large FBMs in North America, Europe, Japan and other countries between 1969 and 1994 shows they are more able to integrate their technological capabilities than often believed. Technological capabilities in food, biotechnology and drugs and, to a lesser extent, the size of the company explain statistically a large share of the FBM's capabilities level in chemicals. The FBM integrates its food and chemicals capabilities even when they are separate businesses. To stimulate the industry's competitiveness, public institutions should encourage research in interdisciplinary areas and facilitate the emergence of new research organizations within food companies.