Spreading the gains from geographical indications: A longitudinal study on the extension of the Prosecco GI

Defined as signs denoting products linked to discrete characteristics of an area, geographical indications (GIs) acquired prominence in the economic development agenda. Gains from GIs triggered processes of redefinition and extension of the underlying territorial boundaries. Extensions increased the number of beneficiaries of the returns from GIs but also ignited tensions that deserve to be observed to distil theoretical insights on the evolution of indications and actionable guidelines for practitioners and policymakers. This study investigates the processes governing the settlement of tensions after the extension of a GI and attempts at understanding how contestations among incumbents and newcomers can be managed. Through a retrospective longitudinal analysis of the Prosecco extension, we find that incumbents and newcomers clashed based on different visions of the GI. Three elements allowed the management of tensions: political agency, the design of governance mechanisms, and a territorial portfolio strategy.