What makes Napa Napa? The roots of success in the wine industry
California is world-renowned for the ability to produce world class quality wine. At the center of this achievement is the development of Napa as a premier wine producing region. We examine the sources of Napa’s success by testing factors from leading industrial location theories against statistical...
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| Format: | Article |
| Language: | English |
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Firenze University Press
2014-06-01
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| Series: | Wine Economics and Policy |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2212977414000040 |
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| author | Anil Hira Tim Swartz |
| author_facet | Anil Hira Tim Swartz |
| author_sort | Anil Hira |
| collection | DOAJ |
| description | California is world-renowned for the ability to produce world class quality wine. At the center of this achievement is the development of Napa as a premier wine producing region. We examine the sources of Napa’s success by testing factors from leading industrial location theories against statistical and qualitative evidence. Using an unusual database of county-wide data on the wine industry to compare Napa’s success with other wine-producing regions of California, we can control for different historical factors and economic conditions that temper most comparative wine studies. Many regions in California can produce world class wine, but none enjoy the same level of returns as Napa. Path dependency and distance to markets are poor explanations for the relative success of wine regions. We find that while terroir, or natural comparative advantage, has some evidence behind it, social capital and entrepreneurship behind technological leadership are central to Napa’s competitive advantage. |
| format | Article |
| id | doaj-art-32acd3478bdb4bf28259745e896e9e9a |
| institution | Kabale University |
| issn | 2212-9774 |
| language | English |
| publishDate | 2014-06-01 |
| publisher | Firenze University Press |
| record_format | Article |
| series | Wine Economics and Policy |
| spelling | doaj-art-32acd3478bdb4bf28259745e896e9e9a2025-08-20T03:58:19ZengFirenze University PressWine Economics and Policy2212-97742014-06-0131375310.1016/j.wep.2014.02.001What makes Napa Napa? The roots of success in the wine industryAnil Hira0Tim Swartz1Department of Political Science, Simon Fraser University, CanadaDepartment of Statistics and Actuarial Science, Simon Fraser University CanadaCalifornia is world-renowned for the ability to produce world class quality wine. At the center of this achievement is the development of Napa as a premier wine producing region. We examine the sources of Napa’s success by testing factors from leading industrial location theories against statistical and qualitative evidence. Using an unusual database of county-wide data on the wine industry to compare Napa’s success with other wine-producing regions of California, we can control for different historical factors and economic conditions that temper most comparative wine studies. Many regions in California can produce world class wine, but none enjoy the same level of returns as Napa. Path dependency and distance to markets are poor explanations for the relative success of wine regions. We find that while terroir, or natural comparative advantage, has some evidence behind it, social capital and entrepreneurship behind technological leadership are central to Napa’s competitive advantage.http://www.sciencedirect.com/science/article/pii/S2212977414000040Wine industryCaliforniaIndustrial locationRegional economicsEconomic developmentSocial capitalEntrepreneurshipNapaTerroir |
| spellingShingle | Anil Hira Tim Swartz What makes Napa Napa? The roots of success in the wine industry Wine Economics and Policy Wine industry California Industrial location Regional economics Economic development Social capital Entrepreneurship Napa Terroir |
| title | What makes Napa Napa? The roots of success in the wine industry |
| title_full | What makes Napa Napa? The roots of success in the wine industry |
| title_fullStr | What makes Napa Napa? The roots of success in the wine industry |
| title_full_unstemmed | What makes Napa Napa? The roots of success in the wine industry |
| title_short | What makes Napa Napa? The roots of success in the wine industry |
| title_sort | what makes napa napa the roots of success in the wine industry |
| topic | Wine industry California Industrial location Regional economics Economic development Social capital Entrepreneurship Napa Terroir |
| url | http://www.sciencedirect.com/science/article/pii/S2212977414000040 |
| work_keys_str_mv | AT anilhira whatmakesnapanapatherootsofsuccessinthewineindustry AT timswartz whatmakesnapanapatherootsofsuccessinthewineindustry |