ABSTRACT
Michael Porter’s work helps explain the sources of international competitiveness possessed by the economies of advanced nations, but has a limited application when it comes to explaining the levels and dynamic changes of economies in less developed or developing countries. The experience of Korea’s economic development in the past three decades reveals how groups of well-educated, motivated, and dedicated people have played a central role in not only shaping the nation’s competitiveness but also moving the nation dynamically from a less developed stage to an advanced one. One misconception of international competitiveness is based on the notion that it depends on a plentiful supply of labour, capital and natural resources at low prices. This economic theory mistakenly links a nation’s international competitiveness to its factor endowments. Endowed resources are only a part of many determinant factors.
