Biomedical Engineering Reference
In-Depth Information
capacity in high-tech industries and reducing the potential costs of
integrating any emerging technologies into existing healthcare
markets. Moreover, investing in innovation increases the research
and development indicators of a nation-state, leads to improved
productivity and is an essential component of economic growth.
Constructing a skilled research workforce, generating a high number
of research outputs and encouraging both foreign and local investment
in research and development are fundamental to this process.
3.1.2 Theprincipleofcompetitiveadvantageandwhyitmatters
Fundamentally, the principle of competitive advantage between
nations is based on the idea that '… prosperity is created, not
inherited' (Porter, 1990: 73). Where classical economists would argue
that competitive advantage arises out of the inherent capacities of a
nation, others argue that competitive advantage '… depends on the
capacity of its industry to innovate and upgrade' (Porter, 1990: 73).
Moreover, while it might be argued that the globalization of markets
has rendered the nation-state obsolete, from the point of view of
generating competitive advantage, the nation becomes more, and not
less, important (Porter, 1990). An important feature of competitive
advantage is that home industries are '… forward looking, dynamic
and challenging' (Porter, 1990: 74).
A key feature of competitive advantage is successful innovation
(Porter, 1990). Successful companies pursue change and invest in the
skills and resources of their staff (Porter, 1990). Such innovations
might involve imagining an entirely new market or anticipating the
future demands of foreign and domestic markets (Porter, 1990).
Moreover, information is an essential part of this process (Porter,
1990). In general terms, success is a function of a sustained effort at
innovation, and companies that fail to innovate or slow down their
innovative efforts will become less successful over time (Porter,
1990). This reinforces the earlier point that '… prosperity is created,
not inherited' (Porter, 1990).
Most significantly, nations that are home to the world's most
successful companies have a unique set of conditions that support
