Geographical Indications and Innovation: Evidence from EU regions

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