Overview On Territorial Competitiveness: From Hos Theory To

The concept of competitiveness has been extremely influential in recent years, and today is a dominant discourse among all economists and policymakers worldwide. From its entry on the market, a company competes not only nationally but also internationally. To meet this increasing competition, the company will have to develop those creative-productive capabilities so as to secure its future in a highly competitive market. To discuss about the competitive advantages, the paper will analyze first in a brief overview, the evolution of economic thought, starting from the absolute and comparative advantages, and end with the competitive advantages. The paper will start with the classical theory. An extremely important step towards sustainable development economic thought was moving from an autarkic thinking toward a more liberal thinking, focused on commerce and encouraging trade flows, manifested by the mercantilists. The classical economic thinking is completed by another work, which encourages the production and trade creation effect achieved by specialization and comparative advantages effects. Then, the paper continues with the HOS model designed by the Scandinavian economists, which emphasis on the correlation between the abundance of natural resources and the production of those goods based on those resources. The comparative advantage effect is studied also by other economists that focus on comparing the industrial production results. Such comparison is made between the heavily industrialized countries, and those countries which emphasize on the primary sector production. Further, other economists allocate plenty of time to research the correlation between research and development activities with education investment process. Their results and recommendations will be presented in this paper. The final chapter will look at the passing from a comparative to a competitive advantage. The leading author in this domain will correlate all the theories mentioned. This embeddedness is possible through a complex diamond shaped figure which gives a logical and rational explanation.