The Competitive Advantage of Nations

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Based on research in ten leading trading nations, The Competitive Advantage of Nations offers the first theory of competitiveness based on the causes of the productivity with which companies compete. Porter shows how traditional comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and how broad macroeconomic accounts of competitiveness are insufficient. The book introduces Porter's "diamond," a whole new way to understand the competitive position of a ...
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Overview

Based on research in ten leading trading nations, The Competitive Advantage of Nations offers the first theory of competitiveness based on the causes of the productivity with which companies compete. Porter shows how traditional comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and how broad macroeconomic accounts of competitiveness are insufficient. The book introduces Porter's "diamond," a whole new way to understand the competitive position of a nation (or other locations) in global competition that is now an integral part of international business thinking. Porter's concept of "clusters," or groups of interconnected firms, suppliers, related industries, and institutions that arise in particular locations, has become a new way for companies and governments to think about economies, assess the competitive advantage of locations, and set public policy.

Based on his in-depth analysis of over one-hundred leading manufacturing and service industries in ten nations, Michael Porter (Competitive Strategy, Competitive Advantage) now formulates a brilliant new theory of how and why some nations compete more effectively in international markets than others.

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Editorial Reviews

Publishers Weekly - Publisher's Weekly
Harvard economist Porter suggests that it is no accident that Japan leads in exporting electronics and computer-controlled machinery, Italy in fabrics and home furnishings, and the U.S. in software, medical equipment and movies. In each of the 10 countries that he and his international research team investigated, clusters of firms gained a global competitive edge by capitalizing on innovation, raising productivity, and drawing on unique elements of their country's history and character. Porter, who served on Reagan's Commission on Industrial Competitiveness, sees government's proper role as pusher and challenger, rather than as giver of subsidies to protect industries. Stressing renewed effort and competition as keys to gaining global advantage, he questions regulations that would limit competition and recommends enforcement of U.S. antitrust laws to end monopolistic mergers. This massive, impressive, salient tome is structured so that business executives, economists, policymakers and ordinary readers can turn to the sections most relevant to their needs. 50,000 first printing; first serial to Fortune. (May)
Library Journal
Building on his Competitive Strategy ( LJ 10/1/80) and Competitive Advantage ( LJ 3/1/86), which dealt with competition among companies, Porter here presents a new theory to explain global success. He identifies the fundamental determinants of national competitive advantage in an industry, shows how they work together as a system, and examines ``clustering,'' in which groups of successful firms and industries emerge in one country to gain leading positions in the world market. This important work, based upon research conducted in ten nations, provides important data for both companies and governments. Highly recommended for academic, corporate, and large public libraries.-- Leonard Grundt, Nassau Community Coll. Lib., Garden City, N.Y.
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Product Details

  • ISBN-13: 9780029253618
  • Publisher: Free Press
  • Publication date: 5/28/1990
  • Edition description: Older Edition
  • Pages: 855
  • Product dimensions: 6.47 (w) x 9.59 (h) x 1.88 (d)

Table of Contents

Introduction
Preface
1 The Need for a New Paradigm 1
2 The Competitive Advantage of Firms in Global Industries 33
3 Determinants of National Competitive Advantage 69
4 The Dynamics of National Advantage 131
5 Four Studies in National Competitive Advantage 179
6 National Competitive Advantage in Services 239
7 Patterns of National Competitive Advantage: The Early Postwar Winners 277
8 Emerging Nations in the 1970s and 1980s 383
9 Shifting National Advantage 481
10 The Competitive Development of National Economies 543
11 Company Strategy 577
12 Government Policy 617
13 National Agendas 683
Epilogue 735
App. A Methodology for Preparing the Cluster Charts 739
App. B Supplementary Data on National Trade Patterns 745
Notes 773
References 815
Index 833
About the Author 857
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