Competitiveness of the EU dairy industry

Competitiveness of the EU dairy industry


5 Innovation in the dairy industry

5.1 Overview of innovations

This chapter describes the innovativeness of the European countries. This analysis

is done on the basis of Food Navigator, Dairy Innovation and the Innova database

(see chapter 2 for details).

Product-innovation is the main type of innovation (table 5.1) in the dairy industry.

In the functional foods market in particular, the dairy industry is very active

and the biggest group next to the fruit or vegetable beverages. The next

popular type of innovation is marketing innovation. Organisational innovations

rank third.

However, the databases show some differences in types of innovations:

Food Navigator reports less product innovations and has a higher level of marketing

innovations. Food Navigator is more research oriented. For several

cases, the contribution of research is mentioned whereas Dairy Innovation seldom

gets mentioned. Process and sourcing new products are sparsely observed.

The first 4 types of innovations in table 5.1 are divided into subtypes. Below

we will discuss the difference of these four more in depth. The cases of both

databases are merged and the differences will not be discussed separately.

Batowska (2008) discusses some differences between the databases, where


Table 5.1 Overview of types of innovations (in % of total)

Type of innovation Dairy





Product 44 34 42

Process 9 9 9

Marketing 26 35 28

Organisational 19 18 18

New source of materials/goods 2 5 3

Total 100 100 100

Source: Own findings.

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