250 likes | 391 Views
KNOWLEDGE BASES & INNOVATION. Clone development. Climate controls/ monitoring. Vineyard software management. Rootstock development. VITICULTURE. Virus diagnostics. Integrated pest management. Canopy management. Harvesting methods. Irrigation and drainage. Unique cepages & blends.
E N D
KNOWLEDGE BASES & INNOVATION Clone development Climate controls/ monitoring Vineyard software management Rootstock development VITICULTURE Virus diagnostics Integrated pest management Canopy management Harvesting methods Irrigation and drainage
Unique cepages & blends Maceration “Soft” equipment Barrel ageing VINICULTURE Yeasts Quality testing Temperature controls Hygiene
Appellation and quality standards Vertical integration Premium contracts for grape growers Tourism and hospitality ORGANIZATIONAL & MARKETING Wine competitions Brand development Wine education Online retailing Exports Mergers and acquisitions
The SA wine sector in the apartheid era • KWV controlled prices and surpluses through quota system • Production focussed on maximising yields • Standardised production methods • KWV sole exporter, marketer, distributor • Exploitative labour practices • Stagnant domestic market
Learning to Change: 1994 - 1999 • Quota system abolished end 80’s • Sanctions lifted • Competency gaps in marketing revealed • KWV converts to a company leaving a void • Dramatic increase in exports • Limited industry coordination and strategic planning
The Emergence of a Strategy: 1999 – 2003 • Focus on quality and terroir • New regions and new players established • Planting change in line with world trends • Co-ops converting to companies • Winetech launches Vision 2020 • Wosa focused on building Brand South Africa
Innovation • Production terroir focussed • Labour intensive viticulture • Strong soil science knowledge • Winemakers combine modern technology with tacit knowledge • Significant investment in cellar upgrades • Create unique South African cultivars: Pinotage – across between Pinot Noire and Cinsaut • Brand South Africa • International distribution • Funding for research and development • Increasing skills of labourers and managers
The Chilean Model Foreign Direct Investment Flows • 1975 - 2001: 118.1 million • 1990 - 2001: 94.5 million (origin: US, Canada, France, Spain) Knowledge Flows • Foreign Oenologist, French, at the beginning • Flying Winemakers • Highly skilled national Oenologists
Contradictory performance of the Chilean innovation system Strengths 1. Rising degree of knowledge intensity primarily embodied in capital goods, and partially stimulated by the massive flow of foreign investment. 2. Remarkable capacity of technological absorption and adaptation, based on the presence of dynamic leading firms, skilled human resources, and initial constructive public-private sector interaction.
3. Dynamic and increasingly articulated industrial structure 4. Quality Regulatory Body (SAG) 5. Expansion of export markets and increased export price per unit 6. Increase of fine grape plantations 7. Innovation in wine cepages & viniculture: carmeniere
Current weaknesses 1. Low degree of cooperation and interaction among wine producers 2. Lack of institutional support (e.g. Prochile) and of coordination among the different instutional actors (e.g. SAG, associations, universities, etc.) 3. Low Investment in Marketing & Promotion 4. Good quality but low price niche market 5. No endogenous research or technological Development
POTENTIAL ADVANTAGES OF CLUSTERING • OPPORTUNITIES FOR LINKAGES • COLLECTIVE EFFICIENCIES • POSITIVE EXTERNALITIES EVEN WHEN THESE POTENTIALS ARE REALIZED THE CLUSTER MAY NOT BECOME A DYNAMIC INNOVATION SYSTEM
ANALYZING INNOVATION SYSTEMS ACTORS LINKAGES KNOWLEDGE POLICY LEARNING
The Paradox Number of wineries increases to over 80 But small wineries do not grow A surplus of vinifera grapes appears despite the marketing board Wine output grows from 645,000 litres in 1991 to over 3.9 million litres in 2002 Value of VQA wines sales increased from $5.6 million dollars to $50 million dollars between 1991 and 2002 But Ontario wines lose market share in the domestic market Exports do not grow
Ideal natural conditions and timing • No phylloxera • No plagues and fungi (low humidity) • Sunshine and high luminosity • Low labour costs • Rising external demand for quality wines • Increasing number of new entrants, despite the hegemony of old world producers • Consumer sympathy for “new world” wines