Many things matter for competitiveness.
Successful economic development is a process of successive upgrading, in which the business environment improves to enable increasingly sophisticated
ways of competing.
This environment is embodied in four broad areas as captured in the diamond
model.
The nature of home-market demand for the industry’s product or service.
The location’s position in factors of production, such as skilled labor or
infrastructure, necessary to compete in a given industry.
The conditions governing how companies are created, organized, and managed,
as well as the nature of domestic rivalry.
The presence or absence of supplier industries and other related industries
that are internationally competitive.
Many things matter for competitiveness.
Successful economic development is a process of successive upgrading, in which
the business environment improves to enable increasingly sophisticated ways of competing.