Exploring the Link between Competitiveness and Innovation

Competitiveness is one of the most complex and controversial areas among economists. The literature on the subject is vast, but the more one studies competitiveness, the more one can become aware of the contradictions, debates and different views on the subject. There is, of course, an explanation for all this. Competitiveness can be analysed in relation to all economic actors, whether national, regional, industrial, corporate or individual. In addition, the market in which an economic operator operates and the factors that actually contribute to its performance are not entirely irrelevant. It can be said that even firms within the same industry may not have the same competitiveness factors. Competitiveness means slightly different things to different people, and we do not always find the same opinions on the sources of competitiveness. This paper does not set out to undertake the impossible task of providing a broad interpretation of the concept and levels of competitiveness. Instead, it attempts to relate innovation as a competitiveness factor to the evolution of competitiveness over time. It does so by focusing on competitiveness in the national economy. The study argues that innovation is one of the most important pillars of competitiveness and that countries considered to be more innovative are much higher in the competitiveness rankings, also primarily because of their conscious investment in knowledge or innovation. To prove this, use international multidimensional innovation and competitiveness analyses carried out by the European Commission or by the best-known competitiveness research centres. And it will use the literature review to find further evidence of the positive interaction between competitiveness and innovation.