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Illicit innovation and institutional folding: From purity to naturalness in the Bavarian brewing industry
[Medical use of cannabis and cannabinoids containing products—regulations in Europe and North America]

Author

Listed:
  • Johannes Glückler
  • Yannick Eckhardt

Abstract

We take an institutional perspective to examine how innovation thrives under conditions of resistance. Specifically, we conceive illicit innovation as a process of successive institutionalization of a new practice in the face of contrary law. In the German federal state of Bavaria, the global movement of craft-beer brewing collides with a regional jurisdiction that prohibits precisely these brewing practices and instead protects the traditional institution of purity-brewing (Reinheitsgebot). Grounded on an embedded qualitative case study of brewers and industry representatives, we build a theory of institutional folding of new norms and practices over established ones. This way, creative brewers have succeeded in legitimizing new practices of naturalness-brewing (Natürlichkeitsgebot). Whereas the legal resistance has stimulated brewers to create an original counter-institution, the illicit innovation has also begun to change the institutional context of the beer industry in Bavaria.

Suggested Citation

  • Johannes Glückler & Yannick Eckhardt, 2022. "Illicit innovation and institutional folding: From purity to naturalness in the Bavarian brewing industry [Medical use of cannabis and cannabinoids containing products—regulations in Europe and Nor," Journal of Economic Geography, Oxford University Press, vol. 22(3), pages 605-630.
    • Handle: RePEc:oup:jecgeo:v:22:y:2022:i:3:p:605-630.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbab026
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    Citations

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    Cited by:

    1. Roy Kevin, 2024. "Institutional work and institutional entrepreneurship in the Ontario craft beer industry," ZFW – Advances in Economic Geography, De Gruyter, vol. 68(2), pages 97-110.
    2. Johannes Glückler & Richard Shearmur & Kirsten Martinus, 2023. "Liability or opportunity? Reconceptualizing the periphery and its role in innovation," Journal of Economic Geography, Oxford University Press, vol. 23(1), pages 231-249.

    More about this item

    Keywords

    Illicit innovation; Bavaria; brewing; institutional change; institutions;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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