Harvard Business School - Institute for Strategy and Competitiveness

Strategy for Cross-National Areas

A nation’s competitiveness and economic growth can be enhanced by coordinating economic policy among neighboring countries. Traditional views of strategy for cross-national regions have focused on regions as free trade zones. However, new thinking emphasizes a regional strategy as a powerful tool to enhance competitiveness in each of the constituent nations. A regional strategy creates gains not only from internal trade and investment but also from policy coordination to create mutual benefits to productivity in all countries through specialization and capturing externalities and spillover effects across borders. A regional strategy is a powerful lever for speeding up the process of economic upgrading at the national level as well as a way to promote interest and investment in the region by the international community.

Institutions that have ongoing relationships with Professor Porter and the Institute include The Center for Middle East Competitive Strategy (CMECS) and the Latin American Center for Competitiveness and Sustainable Development. (CLACDS) CMECS aims to contribute towards a more peaceful, stable, and prosperous Middle East by strengthening industrial competitiveness, encouraging regional economic cooperation, and working to increase mutual understanding across national borders. CLACDS was founded to help leaders in the private, public, and civic sectors implement changes promoting sustainable development. Another area of collaboration is the Baltic Rim Project.


		Publications, Presentations and News
		Baltic Rim The Baltic Sea Region as a Place to Do Business State of the Region Report 2007 Christian Ketels November 2007 See related video of Christian Ketels at the 2007 Baltic Development Forum Summit. The Baltic Tigers – An end in sight for the growth story? Christian Ketels Baltic Rim Economies October 2006 The Baltic Sea Region: Top of Europe in Global Competition State of the Region Report 2006 Christian Ketels, Örjan Sölvell October 2006 Competitiveness and Cooperation in the Baltic Sea Region State of the Region Report 2005 Christian Ketels, Örjan Sölvell October 2005 An Assessment of Competitiveness in the Baltic Sea Region State of the Region Report 2004 Christian Ketels, Örjan Sölvell September 2004 Cross National Regions and Competitiveness: BCCA and the Baltic Rim Agenda Christian Ketels Baltic Chambers of Commerce Association Rostock, Germany June 2002 A Baltic Rim Regional Agenda Michael E. Porter and Örjan Sölvell 2001 The Baltic Rim Regional Agenda Michael E. Porter Presentation at the Baltic Development Forum Annual Meeting St. Petersburg, Russia September 25, 2001				Europe Clusters in the EU-10 new member countries Christian Ketels, Örjan Sölvell 2006 European Competitiveness Christian Ketels University of Zagreb June 2004 European Clusters Christian Ketels January 2004 in Structural Change in Europe 3 – Innovative City and Business Regions, Hagbarth Publications Middle East Competitiveness and Economic Development of Gulf and Middle Eastern Countries Michael E. Porter Middle East Petrotech 2003, Bahrain September 2003 *The Nordic Region* The Nordic Globalization Barometer 2008 Christian Ketels April 2008 The Nordic region is prosperous – all Nordic countries have higher levels of prosperity than the average OECD-country. Only the United States and Ireland have a higher GDP per capita than the Nordic countries. How can the Nordic countries also in the future continue to be competitive on a global scale? The first Nordic Globalization Barometer identifies central issues related to the dynamics of globalization and evaluates the position of the Nordic countries in the global economy in three main categories: Economic performance, competitiveness, and globalization readiness. Its aim is to spur and inspire a fruitful discussion on how the region can be further strengthened. See also the Financial Times: Nordics stay hot for globalization


		Harvard Business School Cases
		Available through Harvard Business Online: Central America: Strategy for Economic Integration Describes the economic integration efforts of the Central American countries in the late 1990s. Teaching Purpose: To discuss cross-national economic cooperation among neighboring countries.				Estonia in Transition Discusses the success of a transition country, Estonia, until 1991 part of the former Soviet Union. Illustrates the transition from a planned economy to a market economy, the Diamond model, the cluster model, national policy (macro stability and micro reforms), and potential for a cross-border regional agenda (role of proximity, regional restructuring, and enhanced attractiveness). Teaching Purpose: For students to gain a better understanding of how a good set of policies--combining macro and micro policies--can move an economy into growth and development. Treats the specific case of a planned economy (under Soviet oppression) moving into a transition phase during the 1990s.


		Recommended Links
		Aduanas: Competitividad y Normativa Centroamericana Un Analisis del Codigo Aduanero Uniforme Centroamericano Juan Carlos Barahona and Ronald Garita Editorial de la Universidad Estatal a Distancia, EUNED. Costa Rica, 2003, 274 p. INCAE Reports on Regional Competitiveness				Programa Andino de Competitividad PAC es un proyecto estratégico de la Corporación Andina de Fomento (CAF) para fortalecer la productividad, competitividad y desarrollo sostenido de las economías de Bolivia, Colombia, Ecuador, Perú y Venezuela Baltic Development Forum The Baltic Develop Forum seeks to stimulate growth, innovation and competitiveness in the Baltic Sea Region and its 11 member countries.


	For information about materials not available online, please email iscadmin@hbs.edu.