IDENTIFYING OPPORTUNITIES TO IMPROVE COMPETITIVENESS THROUGH INNOVATION ILLUSTRATED ON THE EXAMPLE OF HUNGARY

Abstract

Due to the economic downturn there is an increased need for companies and economies to outperform their competitors and gain sustainable competitive adventage. However, competiveness is a complex concept. There are a number of definitions and methodologies available to define and measure competitiveness. This study examines the data of a widely referred competitiveness report issued by the World Economic Forum annually. The analysis focuses on how innovation contribute to the overall competitiveness, what are the direct and indirect influencing factors of innovation and how the overall competitiveness may be improved through improving the innovation related indicators. The process is illustrated on the example of Hungary in the context of its’ EU and regional competitive position, with the purpose to identify areas of opportunities to improve national competiveness through innovation.

Keywords

• competitiveness, innovation, European Union, Hungary

References

1. Balkyté, A., and Tvaronavicien, M., (2010), The inclusion of sustainable development dimension into the competitiveness theory. Department of
2. Economics and Management of Enterprises. p. 1. Begg, I. (1999): Cities and Competitiveness, South Bank University, 1999 p. 2.
3. Delgalo, M., Ketels, Christian., Porter, M. E., Stern, S. (2012), The determinants of national competitiveness. NBER Working Paper Series. Working Paper 18249.
4. National bureau of economic research. July 2012 p. 7.
5. Dosi, G. (1988), “The nature of the innovative process” in Dosi,G, Freeman,C et al (eds.) (1988): Technical Change and Economic Theory, Pinter Publishers, London
6. European Commission, (2004), DC Enterprise: Innovation Management and the Knowledge-driven Economy. Brussels
7. European Commission, Industrial Innovation – Glossary http://ec.europa.eu/enterprise/policies/innovation/glossary/index_en.htm#i Accessed: 18.4.2013.]
8. Jaruzelski, B. & Dehoff, K. (2007), The Customer Connection: The Global

9. Innovation 1000. Booz Allen Hamilton.
10. Mokyr, J. (2004): “Mercantilism, the Enlightenment, and the Industrial
11. Revolution”, revised version of paper presented at the Conference in Honor of Eli F. Heckscher in Stockholm, May 2003; from http://mauricio.econ.ubc.ca/pdfs/Mokyr2.pdf. [Accessed: 2.11.2011.]
12. Porter, M.E.:(1990), The Competitive Advantage of Nations Macmillan, London
13. Porter, M. E., and Stern, S. (2001), National innovative capacity, 2001 p. 1.
14. Sala-I-Martin, X., Blanke, J., Drzeniek Hanouz, M., Geiger T., Mia I. (2010): The Global Competitiveness Index 2010–2011: Looking Beyond the Global Economic
15. Crisis. World Economic Forum p. 6. Schumpeter, Joseph A. (1934), “The Theory of Economic Development” Harvard
16. University Press, Boston Schwab, K. (2012): Global Competititveness Report 2012-2013. World Economic Forum, Geneva