ABSTRACT
This chapter introduces the concepts contained in The Competitive Advantage of Nations. It summarises the two main contributions of Michael Porter's book, the diamond framework and the model of economic development. The chapter explores that a description of those applications of the diamond framework that are relevant to the Greek case. It discusses the various views expressed on particular issues in Porter's work. The main goal of Porter's work was to determine the attributes of the national environment, which influence the competitive advantage of firms, in particular industries or segments. The pattern of home rivalry is also considered by Porter as one of the major attributes that shapes competitive advantage. Exchange rates and macro-economic policies that affect production costs are considered by D. Daly and J. J. Jasinowski as being downplayed in Porter's analysis. The questionable link between the competitive advantage of industries and the development of national economies is another problem with the theory of economic development.
