Conclusions

United States, was taken as a reference (California Craft Brewers Association, 2017).

Thus, and in recognition of the growing importance of innovation in triggering competitiveness in companies, industries, and sectors, this variable was studied in the craft beer sector. Our study drew from the perspective of the Oslo Manual (OECD, 2006) and the innovation value chain model (Hansen & Birkinshaw, 2007) and is supported by the neo-Schumpeterian school represented by Freeman (1998) and Dosi (1988), as well as various studies linked to the craft beer sector (Duarte et al., 2017; Kleban & Nickerson, 2012). Lastly, the study sought to describe this industry based on an analysis of its structure, revealing a collaborative dynamic between actors that make up this industry.

The main findings show that the craft beer industry in Baja California is at a stage of development and its emergence has been driven both by the success expe- rienced in southern California and producers’ own interests, which at the outset were not necessarily purely commercial in nature, but due to a genuine desire to develop their own craft skills.

With respect to Hansen and Birkinshaw’s (2007) innovation value chain, it has been shown that in this industry, innovation is greatest in the idea conversion and diffusion links, as producers view attributes of differentiation, creativity, and origi- nality as being present in their production processes, in which they combine new ingredients with traditional methods, giving rise to a wide range of styles and thereby new markets. And, on the other hand, these attributes are also found in trade dress and brand management, where creativity and originality are observed in aspects that range from the product name to the architecture of the establishment.

This means that, based on the classification by the OECD (2006), this industry features innovations in three of the four types of innovation, namely product, process, and market innovation, and there is no evidence of organizational innovation.

The industry is based on differentiation, which translates into (1) product innova- tions, with a wide range of styles and flavors derived from unique recipes, and which have given rise to a new market niche in which consumers place value on the whole experience surrounding beer consumption; (2) process innovations, in which producers have achieved a high degree of specialization that has enabled them to develop their own production technology or enhance existing technology; and (3) marketing, in which differentiation has become a competitive strategy.

Nonetheless, as in any emerging industry, there are also significant challenges.

In this sector, normative and regulatory aspects in particular have been identified as a considerable obstacle for the development of the industry.

Similarly, regarding technology and knowledge transfer, a cooperative industry is noted in which many producers do not only claim to have received significant knowledge from other producers, but also to have developed it themselves. This characteristic is emerging as a variable that merits more in-depth research.

Furthermore, it is acknowledged that building collaborative networks is a factor that entrepreneurs must consider to achieve success, as it empowers them to meet the challenges posed by their environment. In the case of craft beer, this factor is part of their DNA, so is perceived as natural in their day-to-day activities. This can be explained by the fact that their interests go beyond business, and is associated

with the sense of belonging to a community. This dynamic has enabled micro and small breweries to leverage these relationships to compete in a market dominated by major national and transnational companies, as by working together it becomes easier to exchange valuable resources, such as supplies and other aspects of the value chain infrastructure, but above all, specialized and strategic knowledge (Duarte et al., 2018; Plummer et al., 2005).

Based on the above, this chapter also salvages the idea of the craft beer sector as a collaborative industry, the potential impact of which on the economic develop- ment of the Baja California region is imminent.

Similarly, this study describes a recently created industry with marked collabora- tive efforts between participants, based on friendship rather than business, which is in line with Rodgers and Taves (2017), who describe how brewers are driven by satisfaction and enjoyment rather than economic gain. This climate in particular produces a friendly context and reduces rivalry between competitors. Similarly, a high degree of collaboration was identified between brewers themselves, and it has been ascertained that this does not occur to the same extent with other sectors, especially the banking sector and the government, which has been identified as an obstacle rather than an ally.

On the other hand, it can be seen that knowledge exchange is an aspect that should be studied further. It was found that a high percentage of those surveyed had exchanged significant knowledge for development, as shown by literature (Casson

& Giusta, 2007; Duarte et al., 2018; Forret & Dougherty, 2004; Roberts & Bradley, 1991; Rodgers & Taves, 2017).

As far as the implications of this study are concerned, it is important to mention that this is an initial approach to the industry in the region, so it was decided to begin by studying the city of Ensenada before expanding the study to the entire Baja California region.

Finally, it follows that craft beer is an industry that faces great challenges, such as defending itself against control by major traditional breweries, with an economic power that entails significant disadvantages for craft brewers, or extreme local and national regulation. However, strategies focused on differentiation and their integra- tion into the local socio-economic fabric offer advantages that are enabling the industry to become more competitive. These strategies are closely linked to the two variables analyzed in this chapter: innovation and collaboration, which due to their importance merit a more in-depth study in future research.

The lessons learned and findings in this study of the development of the craft beer industry in Ensenada lay the foundations for a study of the sector in the cities of Tijuana and Mexicali. However, it should be mentioned that the analysis strategy used, which incorporates key aspects of the innovation chain, is unprecedented in cultural industries. Indeed, there are other aspects that are relevant, such as those relating to intellectual property and technology transfer, which will be considered topics for future work, and which we believe will offer economic certainty and strength to a booming sector with great potential for economic development in Baja California.

Acknowledgments To the National Council of Science and Technology (CONACYT) for the support and funding granted to develop Project 1241 in the 2015 call for proposals in Addressing National Problems. Similarly, the authors wish to think Creta Cota Cota for her enthusiastic and valuable collaboration in developing this project.

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