What Makes Clusters Competitive?

What Makes Clusters Competitive?: Cases from the Global Wine Industry

Edited by ANIL HIRA
Copyright Date: 2013
Pages: 288
https://www.jstor.org/stable/j.ctt32b8j5
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  • Book Info
    What Makes Clusters Competitive?
    Book Description:

    While global competitiveness is increasingly invoked as necessary for economic success stories, there are few answers available about how it can be achieved or maintained. The idea of stimulating industries to spur on economies is often proposed, but industrial policy can be seen as a boondoggle of government spending, and theorists of globalization are doubtful that such efforts can succeed in a world of fragmented supply chains. What Makes Clusters Competitive? tests fundamental theoretical hypotheses about what makes industries competitive in a globalized world by using the wine industries of several countries as case studies: British Columbia (Canada), Extremadura (Spain), Tuscany (Italy), South Australia, and Chile. Taking into account historical and location-specific characteristics, and drawing out policy lessons for other regions that would like to promote their industries, this volume demonstrates the value of applying cluster theory to understand market forces, while also describing the forces underlying the development of the wine industry in a range of different settings. An excellent resource for those interested in what makes industries succeed or struggle, What Makes Clusters Competitive? offers guidance for policymakers and the private sector on how to promote local industries. Contributors include David Aylward, Alexis Bwenge, Sara Daniele, F.J. Mesías Díaz, Cristian Felzenstein, Husam Gabreldar, F. Pulido García, Sarah Giest, Elisa Giuliani, Andy Hira, Mike Howlett, A.F. Pulido Moreno, and Oriana Perrone.

    eISBN: 978-0-7735-8955-1
    Subjects: Business

Table of Contents

  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-viii)
  3. Figures and Tables
    (pp. ix-xii)
  4. Acknowledgments
    (pp. xiii-2)
  5. 1 Explaining the Success of Clusters: A Framework for the Study of Global Wine Industry Dynamics
    (pp. 3-56)
    ANIL HIRA, SARAH GIEST and MIKE HOWLETT

    The guiding research question for our project is: What makes some late-developing industries competitive in global markets, while others fail? The question is of great interest given the challenges faced by Northern countries – to restart long-term economic growth as manufacturing retreats and services seem to generate less employment – and those faced by the Southern, or developing, countries who seek new ways to generate economic growth, particularly those that might generate export revenues and act as growth catalysts.

    For much of the twentieth century, the “battle of ideas” has been one of polarised views of economic management decisions being dominated either...

  6. 2 Development of the Global Wine Industry
    (pp. 57-84)
    ANIL HIRA and HUSAM GABRELDAR

    This chapter provides background to readers unfamiliar with the wine industry. It focuses on the contextual factors behind competitiveness in the global wine industry as exposed in the current literature. The most important development to explain is the phenomenal growth of New World wine producers at the expense of Old World producers. We examine existing explanations for this phenomenon in order to set up our study of factors behind competitiveness in the industry.

    Wine is made naturally when crushed grapes of the speciesvitis viniferaare left for a few days. Yeast cells collect on the outside of the skin...

  7. 3 The Wine Industry in British Columbia: A Closed Wine But Showing Potential
    (pp. 85-126)
    ANIL HIRA and ALEXIS BWENGE

    This chapter is based on a 2009–10 study of the competitiveness of the British Columbia, Canada (BC) wine industry. Though the BC industry has recently had remarkable success, we focus on issues on the horizon that threaten the possibilities for growth and stability in the industry. The analysis is based on the application of industrial cluster theory focusing on the four factors laid out in chapter 1: firm adaptability to market evolution, policy interventions, social networks, and coordination of local and global supply chains. The analysis relies upon original data gathered by Anil Hira via fifty-three interviews and surveys...

  8. 4 Competitiveness of the Wine Industry in Extremadura, Spain
    (pp. 127-164)
    FRANCISCO J. MESÍAS, FRANCISCO PULIDO and ANGEL F. PULIDO

    This chapter is based on a 2010 study of thirty wineries in Extremadura, Spain. It analyses the competitiveness of the Extremaduran wine industry, focusing on the advantages and disadvantages that have affected the development of this sector. We examine the role of private and public regulatory bodies in creating competitiveness. We apply the framework developed by Hira, Howlett, and Giest in chapter 1. Their approach focuses on the potential role of public and collective support institutions to promote competitiveness.

    Our analysis reveals that the lack of public-private and private-private interactions is a key factor for explaining the partly unsuccessful and...

  9. 5 Understanding Competitiveness: The Chilean Wine Cluster
    (pp. 165-184)
    CHRISTIAN FELZENSZTEIN

    This chapter is based on the results of a 2011 survey related to the competitiveness of the Chilean wine cluster. The main aim of this chapter is to understand the competitiveness of the Chilean wine cluster, specifically:

    What does the Chilean wine cluster case tell us about the challenges to competitiveness in the wine industry?

    How is Chile attempting to be one of the top producers and exporters of wine in the world, and what can be learned from this experience?

    What are the relationships of different actors in this industry and how might they influence competitiveness?

    Using an analytical...

  10. 6 The Wine Industry in Bolgheri–Val di Cornia, Italy: Facing the Crisis with Success
    (pp. 185-206)
    ELISA GIULIANI, ORIANA PERRONE and SARA DANIELE

    This chapter is based on a 2010–11 study including a survey about the competitiveness of the cluster of Bolgheri-Val di Cornia (BVC) in Italy. Though the BVC cluster has had remarkable success in the past twenty years (see Giuliani 2007a), we focus on what factors are likely to contribute to this growth trend in spite of the current global crisis, which has threatened the competitiveness of this industry. The analysis is based on the application of industrial cluster theory focusing on the four factors laid out in chapter 1: firm adaptability to market evolution; policy interventions; social networks; and...

  11. 7 Competitiveness in the Australian Wine Industry: A Story of Loss and Renewal
    (pp. 207-236)
    DAVID AYLWARD

    This chapter will provide historical and empirical contexts for an exploration of competitiveness within the Australian wine industry. It will trace the evolution of this competitiveness and the structural and policy frameworks that have changed its meaning and its application. Most importantly, the chapter will highlight the three distinct phases of competitiveness: technological advantage, price advantage, and the current attempt at product advantage. The success or failure of each of these phases is examined using empirical data and against an international background of rapidly shifting wine landscapes. Specifically, the author will focus on historical developments, firm responses to market changes,...

  12. 8 Summary of Findings and Policy Lessons
    (pp. 237-246)
    ANIL HIRA

    In this book, we have sought to bring out the best of both worlds in terms of research design – to systematically examine sources of competitiveness while also appreciating the differences between cases. This approach is vital, as we recognise that wine in particular is an industry that cultivates differentiation and depends on tacit knowledge, on the one hand, while also being subject to scientific and organised efforts to develop industry, on the other. We can see the representations of both approaches, generally speaking in the Old World stalwarts such as France vs the newer approaches of California, Australia, and New...

  13. APPENDIX Survey Document (BC Example) BC Wine Survey
    (pp. 247-256)
    ANIL HIRA and DAVID AYLWARD
  14. Contributors
    (pp. 257-260)
  15. Index
    (pp. 261-264)