Evolution of innovation and production supply chains: the case of microalgae-based β-carotene

Ruslana Rachel Palatnik, Michael Borowitzka, Gal Hochman and David Zilberman

European Review of Agricultural Economics, 2025, vol. 52, issue 3, 591-616

Abstract: Establishing new bio-based sectors requires effective implementation of innovation and production supply chains, often competing with established synthetic technologies. Our analytical model conceptualizes the competition between an incumbent industry and a competitive fringe, each producing differentiated products. Although motivated by the β-carotene case, the model is versatile and applicable to other contexts involving novel products entering markets dominated by established technologies. Developed by university researchers and commercialized by start-ups, natural β-carotene was eventually integrated into major synthetic corporations. Initially niche and costly, it gained market competitiveness through innovation and expanded applications, driving technological advancements and significantly benefiting the broader algae-based industry.

Keywords: supply chain; markets; evolution; bioeconomy; natural and synthetic products (search for similar items in EconPapers)
Date: 2025
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