Innovation and Technological Catch-Up
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Innovation and Technological Catch-Up

The Changing Geography of Wine Production

Edited by Elisa Giuliani, Andrea Morrison and Roberta Rabellotti

Since the beginning of the 1990s, the supremacy of ‘Old World’ countries (France and Italy) in the international wine market has been challenged by new players, such as Australia, Argentina, Chile and South Africa, which are recording stunning performances in terms both of export volume and value. This book demonstrates that such a spectacular example of catch-up goes beyond simply copying new technologies; it entails creative adaptation and innovation, and introduces a new growth trajectory in which consistent investments in research and science play a key role.
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Chapter 2: Catching-up Trajectories in the Wine Sector

Lucia Cusmano, Andrea Morrioson and Roberta Rabellotti


Lucia Cusmano, Andrea Morrison and Roberta Rabellotti 1 INTRODUCTION Up to the end of the 1980s, ‘Old World’ countries, and particularly France and Italy, dominated the international wine market. Since the beginning of the 1990s, their supremacy has been challenged by new international players, who are recording spectacular performances in terms of both exported volumes and values. These ‘New World’ countries include affluent frontrunners that are relatively new to the wine sector, such as the USA and Australia, and less developed but rapidly growing latecomers such as Chile, Argentina and South Africa. A number of different factors has contributed to the emergence in the international market of New World players, and, among them, the late rapid expansion of developing economies. On the supply side, a process of technological modernization and pervasive organizational change has been spurred by consistent investment and research effort by newcomers and supported by the establishment of specialized research institutions. The research-driven industry transformation was first promoted by the affluent New World players, but has rapidly diffused to emerging economies, which have been dynamic adapters and adopters of the new business model. The demand side has also been important in this evolution. In fact, New World players have been particularly responsive to changes in wine consumption habits across the world, aligning emerging scientific approaches and institutional building efforts with their branding and marketing strategies. This chapter illustrates the significant discontinuities in both technologies and market demand that favored the emergence to the global stage of affluent newcomers...

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