Territorial development models: A new strategic vision to analyze the relationship between the environment, public goods and geographical indications

Geographical indications (GIs) are increasingly seen as a tool to support sustainable local development. This study focuses on how geographical indications can contribute to a territorial public system, and how this can be threatened by several market failures. Starting from the economic literature on public goods, this document highlights how geographical indications, and their legal protection, can guarantee a sustainable development model. This article aims to illustrate and develop new economic arguments that support a more comprehensive political approach to the contribution that Geographical indications make to sustainable development. The research is focused in Sicily on the production of Pachino Tomatoes with Geographical Indication. This production has an ancient tradition and is located in the center of the Mediterranean. Because of that, it is appreciated in food markets. The study, carried out through the application of the “successful entrepreneurial formula” model, was implemented through a telephone survey of the actors in the production system. The results of the study highlight how territorial public goods based on cohesion represent the vector for the resilience of the agricultural landscape and the growth of the entire region in which the agri-food product is developed. An important aspect, as demonstrated in the paper, is the role of information on the product and the territory. Nowadays, dominance at the competitive system level and social cohesion do not guarantee the success of agri-food production. The study shows that the success of GIs depends on the role of communication that conveys information. This study is new compared to previous ones on the subject, as it applies the business economic approach of the successful entrepreneurial formula to a problem of business competitiveness and, in general, of the territory.