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

AAWE Working Paper No. 83 – Business

 

THE DOURO WINE REGION: A CLUSTER APPROACH

João Rebelo and José Caldas

Abstract

Globalization is challenging the core business of wine industry, especially in traditional European producers’ countries, like Portugal, characterized by a terroir model, i.e., an economic structure supported by a large number of grape-growers, small and medium wine firms and high public regulation, to compete in international markets. Using a cluster approach, this paper presents the case of the most important Portuguese wine region, the Demarcated Douro Region (DDR), which is a strong reference of terroir and known for producing Port wine. To increase its competitiveness in the world wine market, the DDR needs to evolve from an organized to an innovative cluster.

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