Biomedical Engineering Reference
In-Depth Information
terms of size, market share or profit in comparison to other firms in
the same sector (Miozzo and Walsh, 2006). In short, producing the
best product at the lowest price and gaining market share is the key
function of competition between firms (Miozzo and Walsh, 2006).
Outside of price, other factors that affect competitiveness include
human resources, technical capabilities, managerial capacity and
relationships beyond the firm (Miozzo and Walsh, 2006).
When extended to a theory of competitiveness between nations, it
has been suggested that understanding competitiveness on an
international level has traditionally been based on judicious management
of macroeconomic policy; that is, making sure that local production is
as cost-effective as it can be (Miozzo and Walsh, 2006). Critics argue
though that transferring a microeconomic theory to a nation-state
overlooks the historical and cultural factors that actually affect trade
policy and that there is very little evidence-based analysis that supports
any strategic attempts to manage the performance of particular
industries or sectors (Krugman, 1994, cited in Miozzo and Walsh,
2006). Others suggest, however, that this criticism is unwarranted and
that with appropriate analysis and policy development, sectoral based
development can in fact enhance overall national competitiveness
(Lall, 2001, cited in Miozzo and Walsh, 2006).
Different studies seeking to track and account for measures of
competitiveness find counter-examples to both the firm-level
explanation and the sector-level explanation (Miozzo and Walsh,
2006). That is, there are both examples of firms producing products
at a higher price than competitors but expanding market share, and
examples of countries that have developed particular sectors yet
declined on other indicators of competitiveness (Miozzo and Walsh,
2006). Identifying the causal factors that best explain these
phenomena is a major preoccupation of innovation studies, with
some theorists arguing that more attention needs to be paid to
scientific and technological development and others arguing that the
evolution of technical capabilities over time is the key explanatory
focus (Miozzo and Walsh, 2006).
From the point of view of understanding the strategic development
of government policy related to stem cell science, however, building
national competitiveness is driven by a need to develop future
