Abstract
Current innovation literature suggests that industry clusters create 'competitive advantage'. The heightened interaction between 'actors', intense vertical integration and concentration of resources generate enclaves of innovation within which activity is leveraged in an efficient and productive manner. A less studied aspect of such activity, however, is the organisational inertia that may result as cluster priorities dislocate from those of their host industry. This dislocation is becoming apparent in the Australian wine industry. As the international wine landscape consolidates the industry's operating paradigm is shifting from a national approach to one based on a nexus of global/local priorities. Such a paradigm is creating an escalation in tension between nationally focused industry bodies and the firms to which they cater.
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