Measures of International Competitiveness: A Critical

Abstract

An examination of the extant literature on competitiveness reveals a wide variety ofnotions and extreme difficulties of measurement and application.Single measures of competitiveness do not capture all the elements of the concept.Useful measures have to specify the level of analysis (national, industry^ firm orproduct) and encompass competitive performance, its sustainability through thegeneration of .competitive potential and the management of the competitive process. Theinterrelationship between these three key elements are also important in a dynamiccontext.The effectiveness of management is essential to this analysis and the concept ofindustrial effectiveness at the management level enables a link to be established betweenthe concept of .competitiveness and an empirical investigation of decision making. Aframework is derived which is of general use and specific measures are proposed to fillthe ^'empty boxes'' suggested.