The triggers of competitiveness: The EFIGE cross-country report

by Carlo Altomonte, Tommaso Aquilante and Gianmarco Ottaviano on 17th July 2012

Competitiveness is one of the most debated issues in policy circles. But, what triggers it? Capitalising on the first existing harmonised cross-country dataset measuring the entire range of international activities of firms in seven European countries (Austria, France, Germany, Hungary, Italy, Spain, United Kingdom), we first confirm a number well-established results of the firm heterogeneity literature. Secondly, and more importantly, we identify several innovational, financial, organizational and managerial triggers of competitiveness at firm level. Finally, we argue that enhancing-competitiveness policymaking could be improved by firm-level evidence if there were less reluctance to the use of micro-founded indicators to inform policy decisions.

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