Wine and economic development: technological and corporate change in the Australian wine industry

The technological upgrading of existing industries is a key source of growth. An example is the Australian wine sector, which has exhibited sustained growth in its firms, output and trade. Growth rests on two technological advances mechanisation of pruning and harvesting, and new grape varieties. Upgrading required a shared strategic vision, a significant support infrastructure of research institutions, new tertiary educational institutions, a network of consultants and suppliers, and a knowledge-promoting tax regime. However the industry failed to build global marketing and distribution, and the creation of a successful innovation system has not been matched by domestic corporate success.