Open innovation has long been a cornerstone in the technology sector, tracing its origins to the 1990s with Henry Chesbrough’s framework.
It enabled companies, particularly in Silicon Valley, to integrate external innovation in a cost-efficient manner, accelerating agility, reducing risks, and driving competitiveness; and therefore, over time, this model was exported across highly technological industries.
Initial open innovation explorations in the agrifood industry
The agrifood industry presents unique characteristics that directly influenced the application of open innovation models.
- In many productive regions, agricultural practices remain deeply traditional, with methods that have remained largely unchanged for centuries and a slow adoption of new technologies.
- Innovation in the food industry has historically focused on optimizing production processes, by enhancing formulations, protecting intellectual property, and extending shelf life to maximize profitability.
- The sector operates within a highly regulated environment, where stringent consumer safety requirements lengthen development cycles and raise barriers to entry. This contrasts with sectors that benefit from more agile innovation pathways.
- From an economic standpoint, agrifood typically generates lower returns compared to industries such as pharmaceuticals and software. This dynamic has profound implications: with constrained profitability comes limited investment in research and development, further slowing the pace of innovation.
The first implementations of open innovation in the food industry were brought by large companies, such as Mondelez or Kellogs, to enhance efficiency and incorporate new formulations.
The initial enthusiasm led to collaborations between companies and startups, brand acquisitions, and technology foresight. However, companies soon realized that the results might not be as immediate as expected. The challenge was to reconcile the fledgling technologies of startups with the complex, large-scale operations of major food companies.
This skepticism has fueled doubts about the effectiveness of open innovation in the food industry. In reality, however, the challenge has not been a failure of the model itself but rather the need for sufficient time to adapt it to the sector’s unique constraints. Originally designed for tech and pharma, open innovation requires tailored adjustments to align with the food industry’s regulatory requirements, complex supply chains, and the necessity for large-scale ingredient sourcing.
As a result, nowadays, companies are transitioning from an exploratory Open Innovation approach to one that prioritizes measurable outcomes.
Today’s inflationary pressures, the dominance of private-label brands, and heightened efficiency expectations mean that every investment must deliver clear ROI to innovation teams. This shift is redefining how food corporations collaborate, fostering partnerships with mid-sized companies rather than solely relying on early-stage startups.
New models and emerging business opportunities
As the industry evolves, Open Innovation is bringing novel business models beyond production efficiency and ingredient innovation. Circular economy principles are becoming a key driver of new ventures. Companies now seek to develop business models that repurpose byproducts, minimize waste, and create secondary markets, all through strategic collaborations.
At the same time, scalability is becoming a decisive factor. Large companies with substantial revenues cannot justify investing in small-scale ventures unless they demonstrate clear growth potential. To bridge this gap, businesses are turning to spin-offs, joint ventures, and technology acquisitions to unlock new revenue streams while maintaining operational efficiency.
Evolving tools and metrics for Open Innovation in the food industry
Due to all of these aspects, traditional Open Innovation tools are no longer sufficient. Companies are now adopting more nuanced approaches that extend beyond startup engagement, incorporating tech centers, SMEs, and even direct corporate collaborations.
The industry is moving towards ‘solver-based’ models, where solutions emerge from multiple entities working in parallel. Instead of seeking a single startup to solve a problem, companies now engage several complementary solvers simultaneously. This approach enables faster integration and greater adaptability to food industry constraints.
The increasing emphasis on results necessitates precise innovation metrics. OI initiatives must now be tied to specific KPIs, whether revenue growth, margin improvement, cost reduction, or sustainability impact. Innovation can no longer be measured merely by engagement numbers; today, every initiative must deliver concrete business outcomes.
The role of enablers: Structuring Open Innovation for success in Eatable Adventures
As open innovation evolves, enablers have become essential in turning ideas into tangible business impact. Rather than simply connecting corporations with startups, they now design structured collaboration models that align with industry needs.
This shift involves mapping the value chain to pinpoint the right technology providers, manufacturers, and implementation partners. The challenge lies in assembling the right mix of stakeholders—whether large corporations, mid-sized firms, or research institutions—to develop solutions that are both viable and scalable.
Driving meaningful innovation in the food industry requires moving beyond traditional models and adopting more sophisticated, results-driven approaches. Companies must not only identify the right technologies but also structure collaborations that ensure scalability and long-term value. By leveraging enablers, measuring impact through clear KPIs, and engaging a diverse network of solvers, businesses can transform innovation from an experimental effort into a core growth driver. The challenge is no longer just to innovate—it’s to innovate with purpose and precision.
