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Spirit of Innovation or Historical Tradition? The Complex Dilemma of EU Policy for Renowned Products

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  • Cristina Vaquero‐Piñeiro
  • Eleonora Pierucci

Abstract

The preservation of origin through the geographical indication (GI) scheme has evolved from an EU policy tool for high‐quality agrifood products to an instrument of international governance, green transition and property rights competition. The new 2024 EU Law of GIs aims to strengthen the historical value of such a scheme and support its role in indirectly generating socio‐economic spillovers at the territorial level. This article analyses the effects of GI EU policy on innovation in the agrifood technological fields at the municipality level over the 1991–2020 period in Italy. Whilst the EU scheme is preserving the essence of tradition, it may impede the adoption of innovative practices, which, according to the EU Green Deal, are considered crucial for bolstering competitiveness, sustainability and resilience. However, the linkage between products and the region of origin triggers a virtuous circle of informal inter‐organisational collaborations and shared values that may spur innovations. Using propensity score matching and difference‐in‐differences models, we analyse how the acknowledgement of GIs impacts the agrifood innovation performance of Italian municipalities. The results show that GIs, thanks to their territorially sensitive nature, do not limit the innovation performance of territories, though there is no significant positive effect on it either. This helps avoid excessive scaremongering about the impact of tradition‐oriented quality schemes on innovation. The place‐based nature of policies can create favourable conditions that do not hinder innovation, despite their primary focus, even if more direct policy actions are needed.

Suggested Citation

  • Cristina Vaquero‐Piñeiro & Eleonora Pierucci, 2026. "Spirit of Innovation or Historical Tradition? The Complex Dilemma of EU Policy for Renowned Products," Journal of Common Market Studies, Wiley Blackwell, vol. 64(1), pages 214-247, January.
    • Handle: RePEc:bla:jcmkts:v:64:y:2026:i:1:p:214-247
    DOI: 10.1111/jcms.13739
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