User-Producer Interaction, Learning and Comparative Advantage
Michael Porter's book "The Competitive Advantage of Nations" (1990) has led to increasing attention on the favourable impact that "advanced domestic users" may have on competitiveness. This paper presents a critical appraisal of the theoretical and empirical evidence on this relationship. An econometric test of the hypothesis - of a positive impact of advanced domestic users on competitiveness - on data for 16 OECD countries between 1965 and 1987 is presented. In general, the results give strong support to the hypothesis under test. The relationship appears to be stronger in cases where the home-market is exposed to international competition.
|Date of creation:||Mar 1993|
|Note:||Originally published as NUPI working paper no.490, March 1993. Also published in Cambridge Journal of Economics, 1995, 19, (1), 243-56. This version (post-print) is made available with the permission of Cambridge University Press.|
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