IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v116y2023ics0306919223000234.html
   My bibliography  Save this article

Geographical Indications and Innovation: Evidence from EU regions

Author

Listed:
  • Stranieri, Stefanella
  • Orsi, Luigi
  • De Noni, Ivan
  • Olper, Alessandro

Abstract

Understanding the relationship between the diffusion of geographical indications (GIs) and innovation in the agri-food sector represents a relevant research area not yet properly addressed by the current literature. Our contribution aims to fill this gap by investigating the extent to which the diffusion of GIs across EU regions affects technological innovation. We investigate this issue through a Neo-Schumpeterian 'distance-to-the-frontier' model, according to which the relation between the diffusion of GIs and innovations is non-monotonic and depends on the distance of firms and local systems from the technological frontier. To test this prediction, we build an original longitudinal dataset that includes information on GIs and agri-food patents in 265 EU regions over the period 1996–2014. Using different estimators and different proxies for innovative activities, we show that the diffusion of GIs affects innovative activities, conditional on the region’s distance from the technological frontier. That is to say, the spread of GIs slightly reduces innovation and growth in regions close to the technological frontier but spurs them on in laggard regions. These findings have important policy implications.

Suggested Citation

  • Stranieri, Stefanella & Orsi, Luigi & De Noni, Ivan & Olper, Alessandro, 2023. "Geographical Indications and Innovation: Evidence from EU regions," Food Policy, Elsevier, vol. 116(C).
    • Handle: RePEc:eee:jfpoli:v:116:y:2023:i:c:s0306919223000234
    DOI: 10.1016/j.foodpol.2023.102425
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919223000234
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.foodpol.2023.102425?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephan Marette & Roxanne Clemens & Bruce Babcock, 2008. "Recent international and regulatory decisions about geographical indications," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 453-472.
    2. Juan Alcácer & Michelle Gittelman, 2006. "Patent Citations as a Measure of Knowledge Flows: The Influence of Examiner Citations," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 774-779, November.
    3. Langinier Corinne & Babcock Bruce A., 2008. "Agricultural Production Clubs: Viability and Welfare Implications," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(1), pages 1-31, December.
    4. Rachel Griffith & Stephen Redding & John Van Reenen, 2004. "Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 883-895, November.
    5. Koert Van Ittersum & Matthew T. G. Meulenberg & Hans C. M. Van Trijp & Math J. J. M. Candel, 2007. "Consumers’ Appreciation of Regional Certification Labels: A Pan-European Study," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(1), pages 1-23, February.
    6. Lewis Dijkstra & Enrique Garcilazo & Philip McCann, 2013. "The Economic Performance of European Cities and City Regions: Myths and Realities," European Planning Studies, Taylor & Francis Journals, vol. 21(3), pages 334-354, March.
    7. Sergio H. Lence & Stéphan Marette & Dermot J. Hayes & William Foster, 2007. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 947-963.
    8. Alfredo Grau & Araceli Reig, 2021. "Operating leverage and profitability of SMEs: agri-food industry in Europe," Small Business Economics, Springer, vol. 57(1), pages 221-242, June.
    9. Berthold Herrendorf & Todd Schoellman, 2015. "Why is Measured Productivity so Low in Agriculture?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(4), pages 1003-1022, October.
    10. Bruno Amable & Lilas Demmou & Ivan Ledezma, 2010. "Product market regulation, innovation, and distance to frontier," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(1), pages 117-159, February.
    11. Pouliot, Sebastien & Sumner, Daniel A., 2014. "Differential impacts of country of origin labeling: COOL econometric evidence from cattle markets," Food Policy, Elsevier, vol. 49(P1), pages 107-116.
    12. Mérel, Pierre & Ortiz-Bobea, Ariel & Paroissien, Emmanuel, 2021. "How big is the “lemons” problem? Historical evidence from French wines," European Economic Review, Elsevier, vol. 138(C).
    13. Renaud Bourlès & Gilbert Cette & Jimmy Lopez & Jacques Mairesse & Giuseppe Nicoletti, 2013. "Do Product Market Regulations In Upstream Sectors Curb Productivity Growth? Panel Data Evidence For OECD Countries," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1750-1768, December.
    14. Bellassen, Valentin & Drut, Marion & Hilal, Mohamed & Bodini, Antonio & Donati, Michele & de Labarre, Matthieu Duboys & Filipović, Jelena & Gauvrit, Lisa & Gil, José M. & Hoang, Viet & Malak-Rawlikows, 2022. "The economic, environmental and social performance of European certified food," Ecological Economics, Elsevier, vol. 191(C).
    15. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers 09/02, Institute for Fiscal Studies.
    16. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    17. Daniele Curzi & Valentina Raimondi & Alessandro Olper, 2015. "Editor's choice Quality upgrading, competition and trade policy: evidence from the agri-food sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(2), pages 239-267.
    18. Daniel Pick, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 794-812.
    19. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    20. Raffaele Paci & Emanuela Marrocu & Stefano Usai, 2014. "The Complementary Effects of Proximity Dimensions on Knowledge Spillovers," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(1), pages 9-30, March.
    21. repec:dau:papers:123456789/3716 is not listed on IDEAS
    22. Mary Amiti & Amit K. Khandelwal, 2013. "Import Competition and Quality Upgrading," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 476-490, May.
    23. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    24. Zago, Angelo M. & Pick, Daniel H., 2004. "Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(1), pages 1-16, April.
    25. Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-16, August.
    26. Stéphan Marette & John Crespi, 2003. "Can Quality Certification Lead to Stable Cartels?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 43-64, August.
    27. Philippe Aghion & Richard Blundell & Rachel Griffith & Peter Howitt & Susanne Prantl, 2009. "The Effects of Entry on Incumbent Innovation and Productivity," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 20-32, February.
    28. Silvia Rocchetta & Andrea Mina & Changjun Lee & Dieter F Kogler, 2022. "Technological knowledge spaces and the resilience of European regions," Journal of Economic Geography, Oxford University Press, vol. 22(1), pages 27-51.
    29. Russo, Carlo & Weatherspoon, Dave D. & Peterson, H. Christopher & Sabbatini, Massimo, 2000. "Effects Of Managers' Power On Capital Structure: A Study Of Italian Agricultural Cooperatives," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(1), pages 1-13.
    30. Valentina Raimondi & Chiara Falco & Daniele Curzi & Alessandro Olper, 2020. "Trade effects of geographical indication policy: The EU case," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 330-356, June.
    31. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    32. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    33. Braga, Francesco S. & Nardella, Michele, 2003. "Supply Chain Management, Agricultural Policies And Anti-Trust: The Case Of Parmigiano Reggiano And Grana Padano," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(4), pages 1-15.
    34. NES Kjersti & CIAIAN Pavel, 2021. "Marketing standards for food products: A review of literature," JRC Research Reports JRC126936, Joint Research Centre.
    35. Alessandro Gocci & Christoph Luetge & Hristos Vakoufaris, 2020. "Between Tradition and Sustainable Innovation: Empirical Evidence for the Role of Geographical Indications," International Business Research, Canadian Center of Science and Education, vol. 13(9), pages 101-101, September.
    36. Riccardo Scarpa & George Philippidis & Fiorenza Spalatro, 2005. "Product-country images and preference heterogeneity for Mediterranean food products: A discrete choice framework," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 329-349.
    37. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    38. Stephen R. Bond, 2002. "Dynamic panel data models: a guide to micro data methods and practice," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 141-162, August.
    39. Marrocu, Emanuela & Paci, Raffaele & Usai, Stefano, 2013. "Proximity, networking and knowledge production in Europe: What lessons for innovation policy?," Technological Forecasting and Social Change, Elsevier, vol. 80(8), pages 1484-1498.
    40. Martijn Huysmans & Johan Swinnen, 2019. "No Terroir in the Cold? A Note on the Geography of Geographical Indications," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(2), pages 550-559, June.
    41. Hipp, Christiane & Grupp, Hariolf, 2005. "Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies," Research Policy, Elsevier, vol. 34(4), pages 517-535, May.
    42. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, March.
    43. Lewis Dijkstra & Enrique Garcilazo & Philip McCann, 2015. "The effects of the global financial crisis on European regions and cities," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 935-949.
    44. De Noni, Ivan & Orsi, Luigi & Belussi, Fiorenza, 2018. "The role of collaborative networks in supporting the innovation performances of lagging-behind European regions," Research Policy, Elsevier, vol. 47(1), pages 1-13.
    45. Pierre Mérel & Ariel Ortiz-Bobea & Emmanuel Paroissien, 2021. "How big is the “lemons” problem? Historical evidence from French wines," Post-Print hal-04148936, HAL.
    46. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    47. Sam Youl Lee & Richard Florida & Gary Gates, 2010. "Innovation, Human Capital, and Creativity," International Review of Public Administration, Taylor & Francis Journals, vol. 14(3), pages 13-24, January.
    48. Stéphane Maraut & Hélène Dernis & Colin Webb & Vincenzo Spiezia & Dominique Guellec, 2008. "The OECD REGPAT Database: A Presentation," OECD Science, Technology and Industry Working Papers 2008/2, OECD Publishing.
    49. Tim Josling, 2006. "The War on Terroir: Geographical Indications as a Transatlantic Trade Conflict," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 337-363, September.
    50. Richard Blundell & Rachel Griffith & John van Reenen, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(3), pages 529-554.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nadiia Stoliarchuk, 2023. "Defining the Components of the Technology Transfer Model: European Integration Aspect," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 138-144, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniele Curzi & Martijn Huysmans, 2022. "The Impact of Protecting EU Geographical Indications in Trade Agreements," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 364-384, January.
    2. MARSCHINSKI Robert & DE AMORES HERNANDEZ Antonio & AMOROSO Sara & BAUER Peter & CARDANI Roberta & CSEFALVAY Zoltan & GENTY Aurelien & GKOTSIS Petros & GREGORI Wildmer & GRASSANO Nicola & HERNANDEZ GUE, 2021. "EU competitiveness: recent trends, drivers, and links to economic policy: A Synthesis Report," JRC Research Reports JRC123232, Joint Research Centre.
    3. Valentina Raimondi & Chiara Falco & Daniele Curzi & Alessandro Olper, 2020. "Trade effects of geographical indication policy: The EU case," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 330-356, June.
    4. Okada, Yosuke, 2005. "Competition and productivity in Japanese manufacturing industries," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 586-616, December.
    5. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    6. Apa, Roberta & De Noni, Ivan & Orsi, Luigi & Sedita, Silvia Rita, 2018. "Knowledge space oddity: How to increase the intensity and relevance of the technological progress of European regions," Research Policy, Elsevier, vol. 47(9), pages 1700-1712.
    7. Tauber, Ramona & Anders, Sven M. & Langinier, Corinne, 2011. "The Economics of Geographical Indications: Welfare Implications," Working Papers 103262, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    8. Giulia Meloni & Kym Anderson & Koen Deconinck & Johan Swinnen, 2019. "Wine Regulations," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 620-649, December.
    9. Teuber, Ramona, 2011. "Protecting Geographical Indications: Lessons learned from the Economic Literature," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116081, European Association of Agricultural Economists.
    10. Yosuke Okada, 2005. "Competition and Productivity in Japanese Manufacturing Industries," NBER Working Papers 11540, National Bureau of Economic Research, Inc.
    11. Catherine Haeck & Giulia Meloni & Johan Swinnen, 2019. "The Value of Terroir: A Historical Analysis of the Bordeaux and Champagne Geographical Indications," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 598-619, December.
    12. Amable, Bruno & Demmou, Lila & Lezdema, Ivan, 2007. "Competition, Innovation and Distance to Frontier," CEPREMAP Working Papers (Docweb) 0706, CEPREMAP.
    13. Benavente, Jose Miguel & Zuniga, Pluvia, 2021. "How does market competition affect firm innovation incentives in emerging countries? Evidence from Latin American firms," MERIT Working Papers 2021-024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Brouwer, E. & van der Wiel, H.P., 2010. "Competition and Innovation : Pushing Productivity Up or Down?," Discussion Paper 2010-52, Tilburg University, Center for Economic Research.
    15. Doina Caragea & Theodor Cojoianu & Mihai Dobri & Andreas Hoepner & Oana Peia & Davide Romelli, 2024. "Competition and Innovation in the Financial Sector: Evidence from the Rise of FinTech Start-ups," Journal of Financial Services Research, Springer;Western Finance Association, vol. 65(1), pages 103-140, February.
    16. Christophe Charlier & Mai-Anh Ngo, 2012. "Geographical indications outside the European Regulation on PGIs, and the rule of the free movement of goods: lessons from cases judged by the Court of Justice of the European Communities," European Journal of Law and Economics, Springer, vol. 34(1), pages 17-30, August.
    17. repec:dau:papers:123456789/6914 is not listed on IDEAS
    18. Brouwer, E. & van der Wiel, H.P., 2010. "Competition and Innovation : Pushing Productivity Up or Down?," Other publications TiSEM 9efe62df-d940-4471-8bc7-e, Tilburg University, School of Economics and Management.
    19. Yang Pan & Peng Huang & Anandasivam Gopal, 2019. "Storm Clouds on the Horizon? New Entry Threats and R&D Investments in the U.S. IT Industry," Information Systems Research, INFORMS, vol. 30(2), pages 540-562, June.
    20. Duvaleix, Sabine & Emlinger, Charlotte & Gaigné, Carl & Latouche, Karine, 2021. "Geographical indications and trade: Firm-level evidence from the French cheese industry," Food Policy, Elsevier, vol. 102(C).
    21. Marion Desquilbet & Sylvette Monier-Dilhan, 2015. "Are geographical indications a worthy quality label? A framework with endogenous quality choice," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(1), pages 129-150.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:116:y:2023:i:c:s0306919223000234. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.