Innovation Typology in Food Industry Sector: A Literature Review

Innovation carried out by the organization or company aims to increase the added value to the products or services owned. Food industry-based companies have a different trend of innovation from other industrial sectors, and quantitatively the number of research publications in the field of agro food industry is less compared to the research on non-agro food industry. This study aims to determine the type and characteristics of innovation in food companies. Innovation typologies consisting of product, process, market, and organizational innovations, have different role and level in its implementation to food industry. Market innovation leads to marketing through new marketing methods. Organizational innovation includes the organization' strategic steps in making new breakthroughs related to the products or services produced. The food industry sector generally carries out the four types of innovation, yet product and process innovations are more widely used, both of which have a higher potential to be applied compared to market and organizational innovations. Incremental level of innovation is more applicable than radical innovation.