GEB 3375 Chapter Notes - Chapter 6: Competitive Advantage, Factor Endowment
Document Summary
3 key modern perspectives help explain the development of national competitive advantage. National industrial policy: the competitive advantage of nations. Professor michael porter 1990 book the competitive advantage of nations . The competitive adv of a nation depends on the collective competitive advantages of the nation"s firms. : the competitive adv held by the nation tend to drive out the development of new firms and industries with these same competitive advantages. Mne"s conduct r&d in countries other than where the hq are because: gain access to talent, cust costs by hiring lower paid engineers and scientist, get closer to key markets. Innovation promotes productivity- the value of the output produced by a unit of labor or capital. The more productive a firm is the more efficiently it uses its resources: the determinants of national competitive advantage. Perhaps one of the greatest contribution of porter"s work.
