The Brazilian Wine Industry: a case study on geographical proximity and innovation dynamics

Abstract

This paper aims to analyze the cooperation and learning processes in the local system of vitiviniculture production of Serra Gaúcha's region (Rio Grande do Sul, Brazil), in order to characterize the dynamics of innovation of the firms located there. In methodological terms, a non-probabilistic exploratory study has been conducted. Field research in 20 wineries as well as interviews with related organizations were carried out in order to understand which learning mechanisms support innovative strategies adopted by enterprises. Since learning processes are also the result of local interactions, it was necessary to understand whether these interactions produced cooperative links. The results showed that innovations made by the firms were basically incremental. To do so, they use their intrinsic learning processes as well as external agents. These agents can be located in the region or elsewhere. The geographical proximity becomes more relevant for smaller firms. It was still possible to perceive the existence of cooperation in both vertical and horizontal level. Most frequent actions of vertical cooperation occur especially between firms and their suppliers. When horizontal cooperation occurs between enterprises, it takes place particularly in international trading.