chapter  2
Competitiveness analysis and strategy
Pages 46

There is a growing literature on competitiveness in economics and business studies but there is little agreement on what the term means, what affects it and the role for public policies.2 Three distinct views on competitiveness can be conveniently distinguished as follows:3

a a macroeconomic perspective which deals with internal and external balance at country-level and focuses on real exchange rate management as the principal tool for competitiveness;

b a business strategy perspective which is concerned with rivalries between firms and countries and a limited role for public policies in fostering competitiveness;

c a technology and innovation perspective that emphasises innovation and learning at the enterprise and national-levels and active public policies for creating competitiveness.