Buy custom The relationships between Michael Porter’s theory of competitiveness and economic development of nations, regions, and cities and the Economics of Innovation
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| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2324 |
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In particular he identified four main factors that have to be considered:
- organizational conditions, the ability of a nation to transform its natural resources and infrastructures into competitive advantage;
- demand conditions, as the presence of a number of sophisticated customers in a product or sectors;
- related and supporting sectors, as the presence of suppliers and “knowledge makers†who speed up the innovation process;
- companies’ strategy, structure, and competitive system, the way in which companies’ business activities are organized and managed and the intensity of local competition...
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And as Porter said the presence of one or more of this factor is not enough by itself to reach consistent results, if the network which linked them is not effectively developed, as I will show in the next paragraph.
Two examples
The first example is that of Sweden and its very good development between the eighties and nowadays: the presence of natural resources like forest trees certainly helped it but one of the most long-term horizon and fair governments of the world was able to push on some levers to reach the world wide known results...
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