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.