chapter  3
14 Pages

Conceptual Framework for Regional Competitiveness

ByLESLIE BUDD, AMER K. HIRMIS

Dunning et al. (1998) argue that:government and governance. Rather like globalization, the repetition of the term ‘competitiveness’ sheds much Competitiveness is a way of discussing the relative perforheat but little light. Competitiveness has become a mance of economies in a benchmarking sense. It can help generic term that is applied widely to a variety of identify areas of the economy that are lagging behind but business and economic circumstances. Consequently, it not the reasons for those lags. means different things to different people. In public

They found it difficult to define competitivenessfora, many policy-makers tend to conflate the terms of beyond identifying the level and growth of Grosstrade performance with the productivity of firms and Domestic Product (GDP) per head the most frequentlyindustries into a single entity of competitiveness. cited and used measure. There are a number of studiesThe purpose of this paper is to make a contribution of competitiveness, particularly national competi-to the debate surrounding regional competitiveness. It tiveness, that start from the same conceptual pointalso aims to further the research agenda, that to date (Gudgin , 1996; Department of Trade andhas been conceptually wanting. Industry, 1998; Brooksbank and Pickernell, 1999; Healey & Baker, 1999; Interview, 1999).

Definitions The present staring point is Porter ’s (1998) ‘diamond’ framework, which consists of the following:The paper starts by setting out some definitional