Quotation Aiginger, Karl, Vogel, Johanna. 2015. Competitiveness: from a misleading concept to a strategy supporting Beyond GDP goals. Competitiveness Review 25 (5), 497-523.




Purpose – This paper aims to show how the term competitiveness has been applied and adapted since Michael Porter made it respectable in economics, strategic management and consulting. This paper connects the concept with new developments in the theory of the firm, theories of growth and, finally, with Beyond GDP literature. Design/methodology/approach – This paper distinguishes between input and output competitiveness, developing a set of indictors for both. Countries are ranked according to costs, structure and capabilities (drivers of competitiveness) as well as according to economic, social and ecological performance (performance pillars). Finally, outcome competitiveness is explained by the individual drivers, using econometrics and principal component analyses. Practical implications – Defining competitiveness as the ability of a country or nation to deliver Beyond GDP goals changes the policy conclusions drawn from the quest for competitiveness. Policies to reduce costs prove inferior relative to “high-road strategies” built on skills, innovation and supporting institutions. Ecological ambition and social investment are not costs, but enablers of competitiveness for high-income countries. Originality/value – Connecting the well-known term competitiveness with Beyond GDP goals is a new approach. It is very different from the old concept of cost competitiveness criticized heavily by Paul Krugman. Supplying a set of indicators to measure “low-road” and “high-road” competitiveness leads to important new policy conclusions. Keywords Capabilities, Beyond GDP goals, Competitiveness of nations, Regions, Firms, Country rankings Paper type Research paper


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Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Competitiveness Review
Language English
Title Competitiveness: from a misleading concept to a strategy supporting Beyond GDP goals
Volume 25
Number 5
Year 2015
Page from 497
Page to 523
URL http://karl.aiginger.wifo.ac.at/fileadmin/files_aiginger/publications/2015/CR-06-2015-0052.pdf
DOI http://dx.doi.org/10.1108/CR-06-2015-0052


Aiginger, Karl (Details)
Vogel, Johanna (Environment Agency Austria, Austria)
Department of Economics DP (Details)
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