Health claims potentially represent an opportunity for firms to engage in product differentiation and thereby induce investment into R&D and innovation in the food sector. The Nutrition and Health Claims Regulation (EC) No. 1924/2006 (NHCR) aims at protecting and promoting innovation as one of its objectives. However, existing studies indicate that this regulation may create several challenges for innovation in the food sector. To this end, we review the challenges related to the NHCR (Article 13.1) and its impact on innovation. Extant literature suggests that companies face challenges related to changing list of ingredients, missing transparency, wording of claims, limited financial resources, limited R&D resources, switching product categories and abandoning the functional foods sector. Moreover, current studies imply that so far the NHCR (in specific Article 13.1) does not seem to encourage innovation in the EU food sector.

The Common Agricultural Policy has traditionally provided support to farm incomes via direct payments under the Single Payment Scheme. This article analyzes whether the reform of the SPS will decrease the concentration of direct payments and evaluates the effect of the new direct payment scheme on the redistribution of farm incomes. The decomposition of the Gini coefficient allows analysis of the evolution of farm income and direct payment distributions in Italy from 2014 to 2020, and empirical results based on the Italian Farm Accountancy Data Network show that the CAP 2013 reform is expected to decrease the concentration of direct payments. However, the reform is also expected to limit the reduction in farm income inequality due to the adoption of a partial convergence model (the so-called “tunnel” model) instead of a total convergence model as well as, more generally, the increasing share of farm income that is dependent on increased market exposure, leading to higher risks of price volatility and increasing pressure on income.

Literature suggests that despite its positive aim of promoting innovation, the Nutrition and Health Claims Regulation (EC) No. 1924/2006 (NHCR) may bring along several compliance challenges, which might affect innovation in the EU food sector. This study investigates the challenges faced by companies to comply with the NHCR (specifically Article 13.1) and their impact on innovation. To this end, we conducted an online survey with 105 companies involved in the EU food sector. Results indicate that companies perceive wording of claims, missing transparency and limited financial resources as major challenges to comply with the NHCR (Article 13.1). Companies reported not to have increased their R&D expenditure or innovation activities after the NHCR (Article 13.1) was implemented. Thus, this study highlights specific compliance challenges related to the NHCR (Article 13.1) and indicates that currently, the regulation does not seem to have fostered innovation in the EU food sector.

Purpose: One of the objectives of the Nutrition and Health Claims Regulation (EC) No. 1924/2006 (NHCR) is protection and promotion of innovation in the food industry. The purpose of this paper is to explore the impact of the NHCR on both innovation and the sourcing of external knowledge in the European Union (EU) food sector. Design/methodology/approach: An online survey was conducted which resulted in a sample of 105 EU companies for the study. Structural equation modelling was used to examine the nature of relationships that existed among the challenges related to the implementation of the NHCR, external sources of knowledge and innovation. Findings: Challenges related to the NHCR are currently found to have a negative direct impact on product innovation. However, they have a positive indirect effect on product innovation, especially in the case of small and medium-sized enterprises. They also seem to positively affect external knowledge sourcing. Additionally, sources of external knowledge are found to have a positive effect on product and process innovations. Practical implications: This study provides insights to different stakeholders in the food industry who might wish to work jointly and address the various issues related to the requirements of the NHCR and facilitate compliance with the regulation. Originality/value: Understanding the impact of the NHCR on innovation seems pivotal because innovation plays an important role in the EU food sector. To this purpose, the paper delivers insights into some main compliance challenges and their effect on innovation.

This paper assesses how efficiently Common Agricultural Policy direct payments enhance farm incomes by applying a quantile continuous treatment effect model on the Italian Farm Accountancy Data Network sample. Adding to previous analyses, we show that income responses to direct payments are higher in large farms rather than in small farms and lower in farms benefiting from larger levels of support. This suggests that direct payments are not very efficient in supporting incomes of small farms and reducing the disparity existing within the farm population. Furthermore, results suggest that there is scope to reduce the amount of payments provided to highly supported farms.