Áron Török

Open Innovation: A Case‐study of the Hungarian Wine Sector

An effective innovation system is crucial for food companies to counteract international competitive pressure. An important issue is whether it is more effective to innovate by sharing ideas and resources with other companies, or to innovate in-house. The question is how to arrange external ties without compromising unique knowledge and assets. This is particularly controversial in the wine sector, where innovative marketing strategies have to be combined with ‘exclusive’ and ‘secret’ recipes. We use primary data on the Hungarian wine industry. We find that Hungarian wine companies are actively using ‘open sources’ in their innovation processes, even more than commonly acknowledged in the literature and the policy debate. Furthermore, we find that both regional and company-specific factors affect the openness of innovation processes. Our findings point to the importance of the flow of new ideas that comes from global trends and from dealing with foreign companies and stakeholders. This result is supportive of internationalisation strategies at both company and sector level. Furthermore, our findings are supportive of policies oriented towards the creation of business parks and rural clusters, where farmers, processors and tech-companies can establish networks to create new products and/or processing technologies.

Geographical indications and upgrading of small-scale producers in global agro-food chains: A case study of the Makó Onion Protected Designation of Origin

In the context of the marginalising effects of agro-food chain dynamics on upstream suppliers, this paper examines the extent to which geographical indications may improve the positioning of small-scale producers. Making an original distinction between established and nascent geographical indication systems, the paper undertakes a case study of the latter type (the Makó Onion Protected Designation of Origin, Hungary), hitherto overlooked in the literature. The study adopts a global value chain perspective to analyse three means by which geographical indications may facilitate upgrading (capturing higher margins, stimulating collective action and enabling diversification), finding that none have been delivered via the Makó Onion Protected Designation of Origin. The paper examines the reasons for this, identifying the role played by the political and institutional context. Recommendations are made for improving the upgrading potential of geographical indications when applied to nascent systems.

Geographical Indications and Upgrading of Small-scale Producers in Global Agro-food Chains: A Case Study of the Makó Onion PDO

In the context of the marginalising effects of agro-food chain dynamics on upstream suppliers, this paper examines the extent to which geographical indications may improve the positioning of small-scale producers. Making an original distinction between established and nascent geographical indication systems, the paper undertakes a case study of the latter type (the Makó Onion Protected Designation of Origin, Hungary), hitherto overlooked in the literature. The study adopts a global value chain perspective to analyse three means by which geographical indications may facilitate upgrading (capturing higher margins, stimulating collective action and enabling diversification), finding that none have been delivered via the Makó Onion Protected Designation of Origin. The paper examines the reasons for this, identifying the role played by the political and institutional context. Recommendations are made for improving the upgrading potential of geographical indications when applied to nascent systems.

Geographical indications and upgrading of small-scale producers in global agro-food chains

In the context of the marginalising effects of agro-food chain dynamics on upstream suppliers, this paper examines the extent to which geographical indications may improve the positioning of small-scale producers. Making an original distinction between established and nascent geographical indication systems, the paper undertakes a case study of the latter type (the Makó Onion Protected Designation of Origin, Hungary), hitherto overlooked in the literature. The study adopts a global value chain perspective to analyse three means by which geographical indications may facilitate upgrading (capturing higher margins, stimulating collective action and enabling diversification), finding that none have been delivered via the Makó Onion Protected Designation of Origin. The paper examines the reasons for this, identifying the role played by the political and institutional context. Recommendations are made for improving the upgrading potential of geographical indications when applied to nascent systems.