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Purpose

This paper aims to explore the role of eco-innovation in the competitiveness of the Barossa Valley wine region, which is one of the premier wine areas in Australia.

Design/methodology/approach

A case study approach using qualitative in-depth semi-structured interviews was utilised to gather data from respondents in the wine regional cluster.

Findings

The findings suggest that eco-innovation and regional wine clusters contribute to better international performance of wine firms. In addition, environmental issues are important for the wine industry because of the role they play in the global economy.

Research limitations/implications

This study highlights the growing importance of climate change and sustainability on the willingness of wine firms to be involved in eco-innovation. This is crucial for wine firms in the Barossa Valley being globally competitive leaders based on environmental innovations.

Practical implications

Due to the large amount of natural resources that wine firms use, clusters can be used to encourage eco-innovation, which can facilitate further expansion into new international markets. This is important because of consumers increasing emphasis on environmentally friendly food products and the government priority given to eco-innovations.

Originality/value

This paper provides insights into the eco-innovation process that can help wine firms, industry practitioners and regional planners develop better environmental strategies that lead to increased global competitiveness.

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