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Professor Michael E. Porter Harvard Business School Texas Economic SummitSan Antonio, Texas November 14, 2006 Comparative Performance of U.S. States Wages, 1990 – 2004 Comparative Performance of U.S. StatesGross State Product per Capita, 1998 – 2005 What is Competitiveness? Competitiveness is the productivity (value per unit of input) with which a nation, region, or cluster utilizes its human, capital, and natural resources. Productivity sets a nation’s or region’s standard of living (wages, returns on capital, returns on natural resources) Productivity depends both on the value of products and services (e.g. uniqueness, quality) as well as the efficiency with which they are produced. It is not what industries a nation or region competes in that matters for prosperity, but how firms compete in those industries Productivity in a nation or region is a reflection of what both domestic and foreign firms choose to do in that location. The location of ownership is secondary for prosperity. The productivity of “local” industries is of fundamental importance to competitiveness, not just that of traded industries Nations or regions compete in offering the most productive environment for business Enhancing Competitiveness: Developing ClustersHospitality and Tourism in Cairns (Australia) Clusters and Competitiveness Cluster DevelopmentLife Sciences in Massachusetts Institutions for CollaborationMassachusetts Life Sciences, Selected Organizations The Composition of Regional EconomiesUnited States, 2004 The Evolution of Regional EconomiesSan Diego The Process of Economic DevelopmentShifting Roles and Responsibilities Economic Performance IndicatorsTexas TexasRural and Metropolitan Wages, 2004 Composition of the Texas EconomyEmployment by Traded Cluster, 2004 TexasSpecialization by Traded Cluster, 1990-2004 TexasSpecialization by Traded Cluster, 1990-2004 (continued) Impact of Cluster Mix on Average WagesTexas Traded Clusters, 2004 Top Patenting Univer
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