AAWE, Economics Dept, New York University, 19 W 4th St, 6Fl., New York NY 10012aawe@wine-economics.org

AAWE Working Paper No. 155 – Economics

 

An Exploratory Study of Climate Change Innovations in Wine Regions in Australia

Jeremy Galbreath

Abstract

The implications of climate change for regional innovation remains understudied. Exploratory in nature, this study examines climate change innovations in two regional wine clusters in Australia. In South Australia, the evidence suggests firms in the wine industry are implementing climate change innovations at a higher rate than their counterparts in Western Australia, even though Western Australian firms appear to be experiencing more disruptive effects of climate change. To help explain these differences, key variables are examined. Knowledge exchanges (including types of knowledge) in the region and firm-level absorptive capacity explain the uptake of climate change innovations in South Australian firms, whereas knowledge exchanges alone (including types of knowledge) explain innovations in Western Australian firms. A discussion of the findings is offered along with future research opportunities for climate change research in regional studies.

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