No 2013/36 Authenticity renewal – institutions, innovation systems, and Cognac evolution (when the rules of the game don’t change)

Abstract

This paper draws on observations from a long-established network in France, located around the town of Cognac – site of distilled beverages with the same name. Firms within this network have been successful in developing new types of products in the past decades, drawing on and diverging from the conservative culture upon which the region and beverage have built their reputation. The paper reveals that a thick institutional setting, which has been in place for more than a century and is being maintained to preserve the quality and authenticity of the Cognac product, also serve as enablers for new development among local firm.