NEW WINE IN OLD BOTTLES: A CASE STUDY OF INNOVATION TERRITORIES IN "NEW WORLD" WINE PRODUCTION

Abstract

This article applies the concept of "innovation territories" to explain the recent export success of the Australian Wine Industry. Recent data collected from four "New World" wine producing countries are contrasted in order to investigate "innovation territories" that in the Australian context transcend geographic and policy boundaries. The international comparison shows that these territories can be mapped and their interaction compared. A major finding from the study is that one of the major contributors to Australia's success in gaining comparative advantage in this industry is the way local and national investments in R&D have transcended geographic and policy boundaries. Coordination driven by strong national policies is required to make this happen. This suggests that "knowledge intensive clusters" driven by national policies can be turned to advantage for regional development. The present study serves to sketch out how the idea of innovation territories might be operationalised for the purpose of future industry policy research.