Innovation and Innovators in the Wine Industry of Argentina: What a Novel Dataset Reveals

Julio Elias, Nicolas Depetris-Chauvin, Gustavo Ferro, Nicolás Gatti and Emiliano Villanueva

No 4729, Asociación Argentina de Economía Política: Working Papers from Asociación Argentina de Economía Política

Abstract: Argentina is one of the latecomers as a wine exporter among New World producers. However, its insertion in the international market is steady in volume and improving in relative prices, indicating an increasing appreciation of its quality over time. Quality is essential for differentiating products and is intimately related to innovation. We use a new, unique microdata set of wineries in Argentina to quantitatively characterize the innovators’ approach to innovation. Based on the innovator type in the Argentine wine industry, we link these types with variables capturing critical decisions in the production process and variables capturing the winery's performance. We use innovator profiles defined by a questionnaire to estimate the impact of being an extremely conceptual innovator on export performance. We hypothesize that there are differences in export performance between different types of innovators. Using an Inverse Probability Weighting with Regression Adjustment (IPWRA) methodology, we find that being an extremely conceptual type of innovator is associated with larger shares of export volume and value. This research has implications for focusing on the types of innovators who succeed as international wine exporters.

JEL-codes: L66 O30 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2024-11
New Economics Papers: this item is included in nep-agr, nep-cse and nep-sbm
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