Local Institutions, Culture and Competitiveness: Leveraging Porto Digitals Reputation through a Geographical Indication of Software

The global competition, marked by the advance and standardization of ICT, increasing commoditisation of software and rapid technological change, is no longer bounded by geographical frontiers. In such scenario, price formation of knowledge services goes beyond neoclassical quality signalling mechanisms, so that information on quality standards becomes central element. When considering Science and Technology Parks, the concept of external economies alone cannot explain their growth and success. The main explanatory source might be in the institutional element: social networks and the evolution of culture and institutions, embedded in the history of the location. Geographical Indications (GI) are shown as part of branding strategies, serving as source identifiers, indicators of quality and promotion of products through the association with those very intangible elements. Porto Digitals GI of Software Services constitutes a unique strategy of promotion and branding, which materializes the intangible aspects which are the source of its creativity and innovativeness.