Transitional Cluster Development: A Case Study From the New York Wine Industry

A number of economic development studies have examined established wine industries around the world using Porter's cluster model. This article uses Porter's cluster model to study the strengths and weaknesses of the Hudson River Valley wine region as it transitions from an agricultural cluster to a wine cluster. The study seeks to determine what the cluster model can contribute to our understanding of the strengths and weaknesses of the Hudson Valley wine cluster, and what the prospects are for its future development as an export-based wine region rather than an agritourism region. The nature of this transformation is explored as well as the challenges to the cluster's future development and competitive performance. Some of the major policy implications of the case are discussed in light of the literature and specific development needs of a transitioning cluster.