International Competitiveness and the Fourth Industrial Revolution Cover Image

International Competitiveness and the Fourth Industrial Revolution
International Competitiveness and the Fourth Industrial Revolution

Author(s): Chen Liu
Subject(s): National Economy, Business Economy / Management, Public Finances
Published by: Uniwersytet Ekonomiczny w Krakowie
Keywords: Competitiveness; International Competitiveness; Fourth Industrial Revolution; Innovation; Diamond Model

Summary/Abstract: Objective: The objective of this paper is to review the definition, theories, measurement, and drivers of international competitiveness, and examine how the Fourth Industrial Revolution (4IR) impacts the competitiveness framework. Research & Design & Methods: The analytical work makes reference to the existing literature on international competitiveness. Development of competitiveness theories and determinants are examined, addressing both the management and economics literature, their differences and intersections. Findings: International competitiveness is best defined as productivity that drives prosperity. Economics literature on competitiveness is based on international trade theories and focuses on country level factors, whereas business literature builds on Porter’s (1990) Diamond Model and covers national, cluster, and firm levels. Technological advancement and emergence of new business models in 4IR call for updated understanding of competitiveness theories and drivers. Implications & Recommendations: We need to develop better understanding on innovation and its ecosystem. Future studies should theoretically model 4IR into the competitiveness framework and empirically examine the impact of 4IR to competitiveness from various aspects Contribution & Value Added: This paper emphasizes the role of growing reliance on technology. It helps policymakers to re-evaluate national competitiveness by examining a nation’s involvement and response to 4IR and how 4IR may potentially impact productivity and prosperity of a nation. It also deepens our understanding on firm level competitiveness in the age of 4IR and suggests future research direction.

  • Issue Year: 5/2017
  • Issue No: 4
  • Page Range: 111-133
  • Page Count: 23
  • Language: English