Core technological competence and knowledge accumulation in the functional food industry: An empirical study of Japanese food firms

Technological competence, an important factor for competitive advantage in several industries, was seldom studied in the food industry. While being called low-tech and largely dependent on markets and suppliers, the food industry has continuously adapted and innovated products responding to changing market and technological opportunities. The flourishing functional food industry in Japan (FOSHU), regardless of existing complex systematic regulation, is one of a proof that food firms have capabilities to perceive the market opportunity and technological changes, seek for knowledge and learn to efficiently integrate acquired knowledge in their core competences. The study on technological profiles and patent analysis allows understanding in firms´ technological strategies such as positioning and dynamics of technological competences. The findings on six Japanese food firms that have FOSHU product activities have confirmed the role of core technological competence as a foundation of new creations under uncertainties, and imply the strategic importance of organizational flexibility in knowledge accumulation and learning process that facilitate firms in creating competitive advantage and responding to the new opportunities.