Startup Basecamp 101: National Level Focus On Industry

StartupInternational
BaseCamp 101
Competitiveness MSL827
National Level
Focus on Industry
Prof. Harsh Mishra

The Competitive
Advantage of Nations
• National prosperity is created, not inherited. It does not grow
out of a country's natural endowments, its labor pool, its interest
rates, or its currency's value, as classical economics insists.
• A nation's competitiveness depends on the capacity of its

industry to innovate and upgrade.
• Companies gain advantage against the world's best

competitors because of pressure and challenge.
• Companies within industries benefit from having strong

domestic rivals, aggressive home-based suppliers, and
demanding local customers.
The Competitive
Advantage of Nations
• Basis of competition has shifted more and more
to the creation and assimilation of knowledge,
the role of the nation has grown.
• Competitive advantage is created and sustained

through a highly localized process.
• Differences in national values, culture, economic

structures, institutions, and histories all
contribute to competitive success.
What Is National Competitiveness?
• The only meaningful concept of competitiveness at the national level is

productivity.
• Productivity is the value of the output produced by a unit of labor or

capital..
• Concerned with the determinants of international success in

technology and skill-intensive segments and industries, which
underpin high and rising productivity.
• Why companies from some nations are better than others at

creating advantages based on quality, features, and new product
innovation.
• Static efficiency is much less important than dynamic improvement

The Diamond of National Advantage
Competition within Japanese Industry
Related & Supporting Industries
Role of the Government
• Government's proper role as a catalyst and

challenger
• It is to encourage— or even push 9 (China Model?)

— companies to raise their aspirations and move to
higher levels of competitive performance -
• Governments should play the proper supportive role

for national competitiveness: encourage change,
promote domestic rivalry, stimulate innovation.
The Company Agenda
• Recognize the central role of innovation—

Competitive advantage arises from leadership that
harnesses and amplifies the forces in the
diamond to promote innovation and upgrading.
• They must take the challenges, see it coming and

not take the easy way.
• Welcome domestic rivalry.
• Use alliances only selectively.

Role of Leadership
• Too many companies and top managers misperceive

the nature of competition and the task before them by
focusing on improving financial performance,
soliciting government assistance, seeking stability,
and reducing risk through alliances and mergers.
• Innovate continuously
• Leadership that is prepared to sacrifice the easy

life for difficulty and, ultimately, sustained
competitive advantage.
India’s competitive Industries
• IT?
• As per the report, India leads in all other areas of

competitiveness except for health, education
and skills
• Sri Lanka boasts the highest healthy life

expectancy (67.8 years) and the workforce with
the highest amount of schooling (9.8 years).
Nations: No Quick Fix
• Nation-states need to market themselves in much the same way as do the
best companies.
• They require a complete marketing strategy.
• Now economic development is more complicated than attracting

immigrants.
• To be credible such promises must be backed up with genuine reforms
• The extent that a nation markets itself as a trustworthy partner, marketing

spurs democratization.
• The question of whether democracy leads to economic development or

vice versa. Although a causal relationship cannot be proved, the two are
closely associated.
Great nations write their autobiographies in
three manuscripts—the book of their deeds,
the book of their words, and the book of their
arts.
— John Ruskin
Nations: A Brand
• Many nation-states engage in rudimentary marketing
• Government ministries of trade, tourism bureaus, and foreign ministries work at

promoting business and projecting a favorable national image.
• Managing a nation’s overall image is similar in principle to managing a corporate brand.
• A strong national image differentiates the country from its peers based on positive
substance rather than prejudice or ignorance.
• When marketing to foreign investors, a developing country with a clear positioning can
avoid competing on price in a “race to the bottom” dynamic
• Until a nation can identify a strong positive element, there is no point in marketing itself.
• “Soft” characteristics of a nation can contribute powerfully to its appeal.
• first impressions and firsthand experience are key.

Marketing a Nation
• Marketing a nation is not identical to marketing a product or service
• “the tendency to sum up countries and their governments in a simple and

convenient formula is a habit of the marketplace, faithfully reflected in the media,”
• a nation’s political leader cannot so easily pursue a clearcut strategy as a CEO
• It is easier for the corporate CEO to enlist the support of employees than for
national leaders who are not dictators
• power is typically more diffuse in a nation than a corporation
• Spain: Joan Miro’s sun image as a symbol of Spain’s rebirth, Britain: “Cool
Britannia”, India: Incredible India
• A great product virtually markets itself, but good marketing cannot compensate for
a bad product.

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StartupInternational

Prof. Harsh Mishra

• A nation's competitiveness depends on the capacity of its

• Companies gain advantage against the world's best

• Companies within industries benefit from having strong

• Competitive advantage is created and sustained

• Differences in national values, culture, economic

• The only meaningful concept of competitiveness at the national level is

• Productivity is the value of the output produced by a unit of labor or

• Concerned with the determinants of international success in

• Why companies from some nations are better than others at

• Static efficiency is much less important than dynamic improvement

• Government's proper role as a catalyst and

• It is to encourage— or even push 9 (China Model?)

• Governments should play the proper supportive role

• Recognize the central role of innovation—

• They must take the challenges, see it coming and

• Welcome domestic rivalry.

• Use alliances only selectively.

• Too many companies and top managers misperceive

• Leadership that is prepared to sacrifice the easy

• As per the report, India leads in all other areas of

• Sri Lanka boasts the highest healthy life

• They require a complete marketing strategy.

• Now economic development is more complicated than attracting

• To be credible such promises must be backed up with genuine reforms

• The extent that a nation markets itself as a trustworthy partner, marketing

• The question of whether democracy leads to economic development or

• Government ministries of trade, tourism bureaus, and foreign ministries work at

• Managing a nation’s overall image is similar in principle to managing a corporate brand.

• “Soft” characteristics of a nation can contribute powerfully to its appeal.

• first impressions and firsthand experience are key.

• “the tendency to sum up countries and their governments in a simple and

• a nation’s political leader cannot so easily pursue a clearcut strategy as a CEO

• power is typically more diffuse in a nation than a corporation

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