Innovation in the Agri-Food Sector in Latin America and the Caribbean

Agri-food systems are fundamental to development. Over and above their contribution to a country’s gross domestic product (GDP), which is less than the contribution of the manufacturing and services sectors, the multiple strategic functions of agriculture in economic, social, and environmental development determine that its participation is far greater than its share of GDP. The agri-food sector faces the global challenge of providing enough food, feed, fuel, and f ibre to meet growing and changing demand. The agricultural innovation system needs to develop and distribute innovations able to enhance productivity and sustainability along the supply chain, while helping the sector cope with climate change issues.1 In developing countries, when talking about rural development it is fundamental to consider the additional challenge of strengthening rural societies and addressing the sustainability challenge, paying particular attention to social inclusion and equity. The food processing industry is typically described as a relatively mature and slow-growing area of business that displays a relatively low level of research and development (R&D) investment and is quite conservative in the type of innovations it introduces to the market. The main reason for this characterization relates to end-customers, who are usually wary of radically new products and changes in consumption patterns. Nevertheless, the recent stringency of legal requirements related to safety and health transforms food product and process innovation into a highly complex, time-consuming, and risky endeavour. Moreover, recent changes in the nature of both food demand and food supply, coupled with an everincreasing level of competitiveness, have rendered innovation not only an unavoidable corporate activity, but also one that is increasingly vital for overall agribusiness profitability.2 This chapter analyses the main sources of innovation for agri-food systems and current trends in technological change, with an emphasis on biotechnology. It also includes a review of the scientific and technological activities necessary for innovation in the agri-food sector. Finally, the chapter adopts a system’s approach and includes an analysis of the role of the different actors of innovation in the sector.