Activating the income increase effect of geographical indications: The critical roles of intellectual property protection and internet development

Abstract

Extant literature suggests that Geographical Indications (GIs) play a crucial role in promoting rural development in China. However, for the majority of underdeveloped regions, due to factors such as insufficient intellectual property protection and limited internet development, the impact of GIs on rural residents' income remains to be verified. This study analyzes the relationship between GIs and the disposable income of rural residents in China, examining how intellectual property protection and internet development serve as critical factors in activating the income increase effect of GIs. Additionally, this study explores the mediating effects of technological and green innovation. By analyzing panel data from 274 prefecture-level cities in China covering the period from 2008 to 2021, our results demonstrate that: (1) The income increase effect of GIs for rural residents have not been fully realized during the study period. (2) After incorporating intellectual property protection and internet development into our analytical framework, we observed that these factors play critical roles in moderating the impact of GIs on rural residents' income. Specifically, GIs significantly increase rural residents' income only in regions characterized by high internet penetration rates and stringent intellectual property protection measures. (3) Under robust intellectual property protection and internet development, GIs promote technological and green innovation, leading to increased income for rural residents. Thus, we suggest that policymakers should enhance regional intellectual property protection, accelerate the construction of rural internet infrastructure, and foster innovation and green innovation initiatives to fully activate the income increase effect of GIs.