Australasian Agribusiness Review - Vol

Recognizing that investment in knowledge and innovation is a driver of sustained longterm growth, developed economies have witnessed an increase in the volume of research and development with a focus on speeding up the development of new products and new processes (Earle and Anderson 1985). Governments have also recognized that investment in technology in particular can improve productivity and generate growth and employment. In the case of the food and agricultural sector, one example of government intervention in a developed economy is Australia’s recent National Food Industry Strategy which was an initiative which sought to “create sustainable advantage through innovation all along the value chain” (National Food Industry Strategy Ltd 2006). The targeted outcomes of the Australian strategy included finding innovative solutions to lowering costs, differentiating products and services and developing strategic alliances between the industry stakeholders.