We explore the existence and extent of scale economies arising from three different external “knowledge capital” factors—investments in R&D, high-tech, and human capital. These relationships are evaluated for the (two- and three-digit level) food and fiber processing industries from the...

Investment in new technology affects structural change and economic performance through its effect on capital and input composition. This is particularly important for capital-intensive industries such as food processing, which lack short-run flexibility due to adjustment costs. This study...