Impediments in cluster development: the case of Târnave valley

Abstract

Abstract Many years after the fall of communism, the Romanian wine industry has been still struggling to overcome lot of challenges such as erratic weather, unfair competition, lack of investments or the need for a clear vision of the future path of growth. The industry has reached eventually a level of maturity although there is still much to be done in terms of, among others, network-oriented management skills and the acknowledgement of the importance of the role of location for upgrading competitive advantages. Cluster development initiatives have become lately an important direction of economic policy, building on earlier macroeconomic stabilization efforts, opening up markets and reducing business costs. Companies that operate within a cluster, as opposed to those that are not integrated in such agglomerations, benefit from externalities thanks to their location, have better access to specialized suppliers, technological improvements and skilled labor, as well as direct connections to specialized knowledge flows. Is cluster formation and development a driver for the revival of the Romanian wine industry? What are the impediments that delay further progress? To answer these questions, a qualitative research was conducted with support of statistical data collected mainly from the Global Competitiveness Report, the Romanian Ministry of Agriculture and Rural Development, the National Institute of Statistics, and the International Organization of Vine and Wine. The paper focuses on the case of the vine and wine region of the Târnave Valley to understand the impediments for cluster development.