These conclusions, the product of a four-year study Harvard Business School professor Michael E. Porter is the author of Competitive Strategy (Free Press, 1980) and Competitive Advantage (Free Press, 1985) and will publish The Competitive Ad-
vantage of Nations (Free Press) in May 1990.Author's note: Michael J. Enright, who served as project coordinator for this study, has contributed valuable suggestions.
Copyright of the patterns of competitive success in ten leading trading nations, contradict the conventional wisdom that guides the thinking of many companies and national governments— and that is pervasive today in the United States. (For more about the study, see the insert “ Patterns of National Competitive Success.” )
According to prevailing thinking, labor costs, interest rates, exchange rates, and economies of scale are the most potent determinants of competitiveness. In companies, the words of the day are merger, alliance, strategic partnerships, collaboration, and supranational globalization. Managers are pressing for more
government support for particular industries. Among governments, there is a growing tendency to experiment with various policies intended to promote national competitiveness— from efforts to manage exchange rates to new measures to manage trade to policies to relax antitrust— which usually end up only undermining it. (See the insert “ What Is National Competitiveness?” )
These conclusions, the product of a four-year study Harvard Business School professor Michael E. Porter is the author of Competitive Strategy (Free Press, 1980) and Competitive Advantage (Free Press, 1985) and will publish The Competitive Ad-vantage of Nations (Free Press) in May 1990.Author's note: Michael J. Enright, who served as project coordinator for this study, has contributed valuable suggestions.Copyright of the patterns of competitive success in ten leading trading nations, contradict the conventional wisdom that guides the thinking of many companies and national governments— and that is pervasive today in the United States. (For more about the study, see the insert “ Patterns of National Competitive Success.” )According to prevailing thinking, labor costs, interest rates, exchange rates, and economies of scale are the most potent determinants of competitiveness. In companies, the words of the day are merger, alliance, strategic partnerships, collaboration, and supranational globalization. Managers are pressing for moregovernment support for particular industries. Among governments, there is a growing tendency to experiment with various policies intended to promote national competitiveness— from efforts to manage exchange rates to new measures to manage trade to policies to relax antitrust— which usually end up only undermining it. (See the insert “ What Is National Competitiveness?” )
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