The U.S. Competitiveness Project is a research-led effort to understand and
improve the competitiveness of the United States - that is, the ability of firms
operating in the U.S. to compete successfully in the global economy while
supporting high and rising living standards for Americans. The Project focuses
especially on the roles that business leaders do and can play in promoting U.S.
competitiveness. The Project approaches current challenges to U.S.
competitiveness as a matter of global concern, not just an American issue.
The opportunity to change the trajectory of competitiveness in America
In an interview with Justin Fox of Harvard Business Review, Professors Michael
Porter and Jan Rivkin define U.S. competitiveness, explain why it’s crucial to
look at drivers of competitiveness holistically, and call upon all Americans,
especially those in business, to meet the competitiveness challenge by turning
strategy into action.
“While government policy sets the stage, it is companies that ultimately win or
lose in the marketplace,” says Professor Porter.
HBS Survey on U.S. Competitiveness
Harvard Business School asked its alumni
to complete an in-depth survey on U.S. competitiveness. Nearly 10,000 business
leaders responded worldwide, resulting in a first-of-its-kind analysis of data
from a broad group of central actors in the global economy. The survey results
provide strong evidence that America faces a deepening competitiveness problem
and help pinpoint where the roots of the problem lie.
The survey findings inform the March 2012 issue of Harvard Business Review,
which will present analyses of critical areas that drive U.S. competitiveness as
well as action agendas for restoring America's economic vitality.
Choosing the United States Michael E. Porter and Jan W. Rivkin
Abstract: Over the last four decades companies have dispersed more and
more of their activities across the globe. Our data and analysis suggest that
the U.S. is losing out on location decisions at an alarming rate, even for high
value adding activities such as R&D that it should be able to attract. In part,
this is because U.S. policymakers are not addressing weaknesses in the national
business environment. Our findings point especially to problems in the tax code,
regulatory environment, workforce skills, education system, macroeconomic
policy, and political system. In addition, executives are following outdated
practices for making location decisions that lead them to two kinds of biases
and mistakes. First, they can miss certain hidden costs of conducting activities
outside the U.S. Second, they may underestimate the potential to make U.S.
activities more profitable by putting down deep roots in, and acting to improve,
local communities. This article will identify the kind of activities the U.S.
should be competing for, share new data on how poorly the U.S. is faring as it
tries to attract these activities, describe how managers choose locations in
practice, and illustrate the impact of the process on their decisions.
