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The term competitiveness stems from the analysis of firms and is usually thought to be well defined at the firm level. Today, however, the notion competitiveness has become a prominent concept in the assessment of countries, regions and locations. The competitive advantage of nations and the...
This paper argues that standards of living are a meaningful measure of competitiveness. It views comparisons with the performance of other regions, and in particular with the US, as an evaluation of the distance to the “technology frontier” and the potential for improvements. Productivity and...
This paper explores the relationship between the rhetoric of the Lisbon Goal of the EU and key insights from trade theory and growth theory. It argues that the policy initiative as such is valid, but the paradigm of international competitiveness is potentially misleading. The focus should,...
The conceptual framework of competitiveness and clusters introduced by Michael Porter in his Competitive Advantage of Nations (Free, New York, 1990) remains exceptionally influential, especially among practitioners. The article discusses recent learnings about Porter's conceptual framework from...
The concept of competitiveness, or competitive advantage, has been given numerous interpretations and tends to be ambiguous. Comparative advantage, although rigorously defined in the Ricardian trade model, is also subject to different interpretations when extended beyond the classical trade...
The attempt to define the term “competitiveness of nations” has reached the phase of decreasing returns. Fortunately, the literature seems to be converging slightly, a tendency, we hope to accelerate. We propose (1) defining competitiveness as “the ability of a country or location to create...
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