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Woodhead Publishing Series in Food Science, Technology and Nutrition: Number 243 Open innovation in the food and beverage industry Edited by Marian Garcia Martinez Oxford Cambridge Philadelphia New Delhi Woodhead Publishing Limited, 2013

Contributor contact details xiii,. Woodhead Publishing Series in Food Science, Technology and Nutrition xix,.. Foreword by J. Hyman xxvii Foreword by W. H, Noordman and E. M. Meijer xxxiii Part I The changing nature of innovation in the food and drink industry 1 Trends in the acquisition of external knowledge for innovation in the food industry 3 M. Acosta, D. Coronado ande. Ferrdndiz, University of Cadiz, Spain 1.1 Introduction 1.2 Reasons for open innovation in the food industry 4 1.3 Measuring open innovation in the food industry 6 1.4 Sources and types of data 8 1.5 Results of the open-innovation study 9 1.6 Conclusions 19 1.7 Acknowledgements 20 1.8 References 1.9 Appendix: concordance between agri-food technological sectors and International Patent Classification (IPC) 23 3 20 2 The tension between traditional innovation strategies and openness: Lindt's controlled open innovation approach 25 V. Laziarotti andr. Manzini, Cattaneo University -LIUC, Italy 2.1 Introduction 2.2 Literature review 2.3 Research method for Lindt case study 28 2.4 Open and closed innovation at Lindt 29 25 26

vi 2.5 Lindt's open-innovation approach in practice: the innovation project Noccior 32 2.6 Results of controlled open innovation in the Lindt case 34 2.7 Conclusions 36 2.8 References 36 3 The role of open innovation in the industry convergence between foods and pharmaceuticals 39 S. BrUring, University of Applied Sciences Osnabriick, Germany and Wageningen University and Research Centre, The Netherlands 3.1 Introduction 39 3.2 A brief literature review on industry convergence 40 3.3 Convergence-related challenges and the role of open innovation 43 3.4 Evidence for industry convergence between foods and pharmaceuticals 47 3.5 Open innovation in order to cope with convergence in the neutraceuticals and functional foods (NFF) sector...«>!-, > 51 3.6 Conclusion. 5;;6,,«3.7 Future trends 58 3.8 References 59 4 Accelerating the innovation cycle through intermediation: the case of Kraft's melt-proof chocolate bars 63 R. Wielens, NineSigma, Belgium 4.1 Introduction 63 4.2 From research to search in company innovation 64 4.3 Key capabilities in open innovation 65 4.4 From idea-driven innovation to need-driven innovation 68 4.5 Case study: melt-proof chocolate bars from Kraft 68 4.6 Conclusions 70 4.7 Future trends 71 4.8 References 72 5 The impact of open innovation on innovation performance: the case of Spanish agri-food firms 74 C. Bayona-Sdez, T. Garcia-Marco and M. Sanchez-Garci'a, Unh>ersidad Ptiblica de Navarra, Spain and C. Cruz-Cazares, University ofbarcelona, Spain 5.1 Introduction: the agri-food sector and innovation 74 5.2 How innovative are Spanish agri-food firms? 77 5.3 Measuring open innovation in Spanish agri-food firms 80 5.4 The effect of openness on the innovative performance of firms.. 85 5.5 Conclusions 91 5.6 References 93

LIUC, vii Part II Partners and networks for open innovation 6 Partnering with public research centres and private technical and scientific service providers for innovation: the case of Italian rice company, Riso Scotti 97 ~ V. Lazzarotti and R. Manzini, Cattaneo University Italy 6.1 Introduction 97 6.2 The role of private technical and scientific service (TSS) providers: advantages and limitations 99 6.3 The role of universities and public research centres: advantages and limitations 100 6.4 Riso Scotti case study 101 6.5 Conclusions and managerial implications 105 6.6 References 107 109... 7 Consumers as part of food and beverage industry innovation S. E. Kemp, Consultant, UK 7.1 Introduction 109 7.2 Understanding food and beverage consumers and their world Ill 7.3 Consumer-centric company culture for innovation 115 7.4 Consumer-driven innovation process 117 7.5 Consumers as co-creators 127 7.6 Conclusion 132 7.7 Future trends 133 7.8 Sources of further information and advice 134 7.9 References 135 8 Co-creation of value with consumers as an innovation strategy in the food and beverage industry: the case of Molson Coors' 'talking can' 139 M. Garcia Martinez, Kent Business School, University of Kent, UK 8.1 Introduction 139 8.2 Co-creation of value with consumers 141 8.3 Research design 142 8.4 Molson-Coors Brewing Company UK (MCBC-UK): the need for consumer-driven innovation 142 8.5 The discover style of open innovation 145 8.6 The 'talking can': co-creating value with consumers 146 8.7 Discussion 149 8.8 Conclusion 151 8.9 References 151

viii 9 Collaborative product innovation in the food service industry. Do too many cooks really spoil the broth? 154 A. /. A. Costa, The Catholic University ofportugal, Portugal 9.1 Introduction 154 9.2 A review of open-innovation practices in the food industry... 156 9.3 Collaborative product innovation (CPI) in the food-service industry: the path of diffusion of sous vide cooking in the US 160 9.4 Conclusions and future trends 170 9.5 References 171 10 Effectiveness of cluster organizations in facilitating open innovation in regional innovation systems: the case of Food Valley in the Netherlands 174 S. W. F, Omta, Wageningen University and Research Centre, The Netherlands and F. T. J. M. Fortuin, Food Valley Organization,, The Netherlands and Wageningen University and Research Centre, The Netherlands 10.1 Introduction 174 10.2 Theoretical background 175 10.3 The Dutch agri-food sector and Food Valley Organization... 177 10.4 Conclusions 183 10.5 Future trends 184 10.6 Sources of further information and advice 184 10.7 References 185 10.8 Appendix 1: the four main functions of Food Valley, including fifteen services, activities and information sources 186 10.9 Appendix 2: assessment of small to medium-sized enterprises and large companies of the importance of Food Valley functions 187 10.10 Appendix 3: member company assessment of the importance of Food Valley functions by company type 188 11 The importance of networks for knowledge exchange and innovation in the food industry 189 B. Ktthne, V, Lefebvre, C. Cochez and X. Gellynck, Ghent University, Belgium 11.1 Introduction 189 11.2 Knowledge exchange and innovation and the importance of networks 190 11.3 Network methodology, a case study approach 195 11.4 Results of the three Flemish case studies 198 11.5 Conclusions and future trends 207 11.6 References 208

ix Part III Establishing and managing open-innovation partnerships and networks 12 Managing open-innovation communities: the development of an openinnovation community scorecard 215 /. Blohm, University of St. Gallen, Switzerland, J, M. Leimeister, Kassel University, Germany and H. Krcmar, Technische Universitctt MUnchen, Germany 12.1 Introduction 215 12.2 Introduction to open-innovation communities and their management 217 12.3 Development of an open-innovation community scorecard... 219 12.4 Implementation of the open-innovation scorecard 228 12.5 Conclusion and future trends 229 12.6 References 230 12.7 Appendix 1: data sources of success measures 232 12.8 Appendix 2: member survey 234 13 The evolution of partnering in open innovation: from transactions to communities 235 K. G. McFarthing, Innovation Fixer Ltd, UK 13.1 Introduction 235 13.2 Identifying and securing partners 236 13.3 Building and structuring relationships 239 13.4 Ecosystems 243 13.5 Human factors 246 13.6 Building a community 249 13.7 Conclusion 251 13.8 Acknowledgements 252 13.9 References 252 14 Managing co-innovation partnerships: the case of Unilever and its preferred flavour suppliers 254 M. Tepic and S. W. F. Omta, Wageningen University and Research Centre, The Netherlands, F. T. J. M. Fortuin, Food Valley Organiza tion, The Netherlands and Wageningen University and Research Centre, The Netherlands and A. Saris, Wageningen University and Research Centre, The Netherlands 14.1 Introduction 254 14.2 Co-innovation 256 14.3 The co-innovation partnership between Unilever and flavour suppliers 260 14.4 Implementation and development of the Flavour Operating Framework partnership 262 14.5 Conclusion 268 14.6 Future trends 272 14.7 References 272

x 15 Managing asymmetric relationships in open innovation: lessons from multinational companies and SMEs 276 D. Oughton, University of Cambridge, UK and L. Mortara and T. Minshall, IfM Centre for Technology Management, UK 15.1 Introduction: the importance of large and small company partnerships in the food industry 276 15.2 The difficulties of open innovation, 278 15.3 Culture, complexity and communication problems 281 15.4 The importance for companies of focusing on risk, reward and balance 283 15.5 Overcoming obstacles to achieve successful company partnerships 284 15.6 Collaborations between companies: case studies 287 15.7 Conclusion 289 15.8 Acknowledgements 291 15.9 References 292 16 Challenges faced by multinational food and beverage corporations when forming strategic external networks for open innovation... L. Tolhurst and J. Brown, Oakland Innovation, UK 294 16.1 Introduction 294 16.2 Strategic external networks for open innovation 295 16.3 Research methodology 298 16.4 Findings 299 16.5 Discussion 304 16.6 Future trends 305 16.7 Conclusions and recommendations 305 16.8 References 310 Part IV Open innovation tools, process and managerial frameworks 17 The 'want find get manage' (WFGM) framework for openinnovation management and its use by Mars, Incorporated 315 M. Garcia Martinez, Kent Business School, University ofkent, UK 17.1 Introduction 315 17.2 History of open innovation at Mars, Incorporated 317 17.3 Mars'open-innovation model 317 17.4 The open-innovation framework: 'want find get manage' 322 17.5 Conclusions 329 17.6 References 330 18 Crowdsourcing: the potential of online communities as a tool for data analysis 332 M. Garcia Martinez and B. Walton, Kent Business School, University of Kent, UK 18.1 Introduction 332 18.2 Predictive modelling competitions 333

LIUC, xi 18.3 Design and management of. predictive modelling competitions 335 18.4 Case study: Kaggle 338 18.5 Conclusions 340 18.6 References 340... 19 The role of information systems in innovative food and beverage organizations 343 J, G. Caudill, University of Tennessee, USA 19.1 Introduction 343 19.2 The role of technology in innovation 344 19.3 Innovative technologies in agriculture and food production 345 19.4 Technology's support of innovation 347 19.5 Free tools for innovation 352 19.6 Future trends 353 19.7 Conclusion 353 19.8 Sources of further information and advice 354 19.9 References 354 20 Effective organizational and managerial frameworks to support open innovation: overview and the case of Heinz 356 - V. Lazzarotti and R. Manzini, Cattaneo University Italy 20.1 Introduction 356 2Q.2 The need for organizational and management tools to support open innovation 357 20.3 Case study: Heinz's strategy, business and organization 360 20.4 Conclusions and managerial implications 366 20.5 References 367 21 Innovating with brains: the psychology of open innovation 369 B. A. Sabel, University ofmagdeburg Medical School, Germany and Institute of Automation, China, K. Sabel, Consulting-Berlin, Germany and J. T, Preston, TEM Capital and Continuum Energy Technologies, USA 21.1 Introduction 369 21.2 Innovation is all about psychology 370 21.3 Phases of innovation 371 21.4 The influence of soft factors on the success of innovation 373 21.5 The psychology of the innovation team 380 21.6 The innovative environment of academia 382 21.7 Start-ups and small to medium-sized enterprises (SMEs): open innovation by default 385 21.8 Predicting innovation success: the 'Preston' equation 385 21.9 Future trends 386 21.10 References 387 Index 389