The Looming Challenge to U.S. Competitiveness

Although the U.S. retains profound competitive strengths--for instance, in higher education and entrepreneurship--those strengths are increasingly threatened by weaknesses in areas such as the tax code, basic education, macroeconomic policies, and regulation. Steps to reverse the loss will require a...

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Bibliographic Details
Published in:Harvard business review 2012-03, Vol.90 (3)
Main Authors: Porter, Michael E, Rivkin, Jan W
Format: Magazinearticle
Language:English
Subjects:
Competition
Economic policy
Macroeconomics
Productivity
Public policy
Online Access:Get full text
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Summary:Although the U.S. retains profound competitive strengths--for instance, in higher education and entrepreneurship--those strengths are increasingly threatened by weaknesses in areas such as the tax code, basic education, macroeconomic policies, and regulation. Steps to reverse the loss will require a new focus by government and business leaders. To restore its competitiveness, America needs a long-term strategy. This will require numerous policy changes by government, which may seem unlikely with Washington gridlocked. However, many of the crucial steps can and must be carried out by states and regions, where many of the key drivers of competitiveness reside. More important, business leaders can and must play a far more proactive role in transforming competition and investing in local communities rather than being passive victims of public policy or hostages of misguided shareholders.
ISSN:0017-8012