Changes In Competitiveness Among The Visegrad Countries After Accession To The European Union: A Comparative Analysis Based On A Generalized Double Diamond Model

Abstract

National competitiveness is a buzzword that awakens much interest and controversy. In its broadest perspective, it is seen as a modern way of describing the development efforts of nations in the times of globalization (Reinert 2001, p. 23-42). This means that forces driving the changes in the global economy: liberalization of international trade, booming investment by multinational enterprises and development of regional integration groupings, need to be included into the competitiveness model. Well-known and commonly used approach to national competitiveness: Porter’s diamond of competitive advantage does not however capture this international context. By concentrating solely on the elements of the domestic environment, the model does not show the complicated international linkages that have shaped the competitiveness of many countries. Especially in the case of small, open ‘catching-up’ economies, assessing national competitiveness solely on the basis of the potential of domestic companies, based on local conditions, does not fully reflect their developmental context, which is also driven by the complex networks of international interdependencies. Building upon the generalized double diamond model developed by Moon et al. (2000), this paper explores the extent to which economic relations with international partners and the activities of transnational corporations affect the competitiveness of the Visegrad Group countries, and how this relationship has been changing in the post-accession period. To answer the research problem posed, Eurostat and Global Competitiveness Report data have been gathered to assess the competitiveness variables on both the domestic/national and international levels. It has been shown that integration within the global economy constitutes an essential element of competitiveness for each of the analysed countries.