The Competitiveness of Nations: Why Some Countries Prosper While Others Fall Behind

Research output: Contribution to journalArticle


Why do some countries perform much better than other countries? This paper outlines a synthetic framework, based on Schumpeterian logic, for analyzing this question. Four different aspects of competitiveness are identified: technology, capacity, demand, and price. The contribution of the paper is particularly to highlight the three first aspects, which often tend to be ignored due to measurement problems. The empirical analysis, based on a sample of 90 countries on different levels of development during 1980-2002, demonstrated the relevance of technology, capacity, and demand competitiveness for growth and development. Price competitiveness seems generally to be of lesser importance.


  • Jan Fagerberg
  • Martin Srholec
  • Mark Knell
External organisations
  • University of Oslo
  • Nordic Institute for Studies in Innovation, Research and Education
Research areas and keywords


  • Asian tigers, competitiveness, development, innovation, Sub-Saharan Africa
Original languageEnglish
Pages (from-to)1595-1620
Number of pages26
JournalWorld Development
Issue number10
Publication statusPublished - 2007 Oct
Publication categoryResearch
Externally publishedYes