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This report offers observations and recommendations on how to increase small and mid-size manufacturers SMMs SMMs' contribution to manufacturing exports; and answers questions related to: the importance of exporting to SMMs with the greatest export growth potential, types of assistance exporters need, the importance of innovation and supply chain for growing exports, and export assistance in a a limited funding environment. The report is in support of a major joint research efforts undertaken by MEP and the U.

Commercial Service. Overall, the report uses 26 indicators, divided into five key areas that best capture what is new about the New Economy: 1. Knowledge jobs; 2. Globalization; 3. Economic dynamism; 4. The digital economy; 5. Innovation capacity. The Edition of the Facts of Manufacturing is a collection of the key facts and figures that define the state of the U. The report provides 65 figures that show the importance of the manufacturing sector and challenges that our industry faces.

The first section of the report focuses on the importance of U.

Competitiveness of regions and the role of cities

Section two focuses on current and future challenges in U. Congress should establish an initiative to designate 20 institutions of higher education as "U.

Manufacturing Universities" as part of a needed push to strengthen the position of the United States in the increasingly innovation-driven global economy. Today, the challenge is even greater as America competes against a wide array of nations seeking to win the race for global innovation advantage, especially in advanced manufacturing.

A new cadre of federally-designated "Manufacturing Universities" that revamp their engineering programs with particular emphasis on work that is relevant to manufacturing firms while providing engineering students with real-world work experience should be part of the solution. Categories: Global Competitiveness, Education and Workforce. There is ongoing interest in the pace of U. Because technology can contribute to economic growth and productivity increases, congressional attention has focused on how to augment private-sector technological development.

Legislative activity over the past 30 or more years has created a policy for technology development, albeit an ad hoc one. Because of the lack of consensus on the scope and direction of a national policy, Congress has taken an incremental approach aimed at creating new mechanisms to facilitate technological advancement in particular areas and making changes and improvements as necessary.

This paper focuses on technology and competitiveness, the federal role in technology development, legislative initiatives, and current technology development programs. In response to the foreign challenge in the global marketplace, the United States Congress has explored ways to stimulate technological advancement in the private sector.

Given the increased popularity of cooperative programs, the paper looks at questions that might be raised as to whether the programs are meeting expectations. Among the issues before Congress are whether joint ventures contribute to industrial competitiveness and what role, if any, the government has in facilitating such arrangements. This paper focuses on technology transfer to the private sector, as well as to local and state governments, and the rationale for federal interest and involvement.

Current federal efforts to promote technology transfer is also examined, as well as a look at the small business technology transfer program and patenting. At issue is whether incentives for technology transfer remain necessary, if additional legislative initiatives are needed to encourage increased technology transfer, or if the responsibility to use the available resources now rests with the private sector.

This study, gathering data from more than CEOs and senior manufacturing leaders in , is part of a multi-year initiative to better understand the trends creating a hyper-competitive global manufacturing environment. The report examines the highly complex forces driving the future of manufacturing and many of the structural changes reshaping the global economy. Overall, the study indicates that leading nations are making the paradigm shift towards prioritizing the development of talented and skilled citizens, who are the source of their competitive advantage, and benefits from their manufacturing infrastructures and ecosystems.

This annual research program was created to provide a running view of the U. It addresses needs in three broad categories: enabling innovation; securing the talent pipeline; improving the business climate. The recommendations include a call to establish a national network of manufacturing innovation institutes; an emphasis on investment in community college training of the advanced manufacturing workforce; an approach to evaluate platform manufacturing technologies for collaborative investment; a plan to reinvigorate the image of manufacturing in America; and proposals for trade, tax, regulatory, and energy policies that would level the global playing field for domestic manufacturers.

While macroeconomic uncertainties still abound, global manufacturers are using the low-growth environment to ramp up their innovation activity, increase efficiency, and add value to their offerings simultaneously. KPMG's new report, Global Manufacturing Outlook: Fostering Growth through Innovation, examines an industry experiencing transformational shifts and the strategies manufacturing leaders are using to adapt to ongoing volatility, drive innovation, and position themselves for both top and bottom-line growth.

State by state grades on areas such as productivity and innovation, human capital, global costs, diversification, venture capital, manufacturing, and logistics. Provides numerous examples of best practice in one or more of ten competitor nations in the areas of: technology acceleration programs and practice; technology acceleration funding mechanisms; next generation manufacturing technical assistance; and connectors.

The comparison matrix on p.

This report offers a comprehensive analysis of the metropolitan geography of U. Some of the main findings: 1 Metropolitan areas, especially large metropolitan areas and central metropolitan counties, contain the great majority of manufacturing jobs and nearly all very high technology manufacturing jobs, reflecting the advantages they provide to manufacturing in general and very high-technology manufacturing in particular.

This report explains how challenges in talent, innovation, infrastructure, and energy consumption are what countries and companies in the manufacturing industry must prepare to face in the coming years. In order to stay competitive in the global market, companies need to find the highest skilled workers, breathe innovation and become more efficient in energy, production and logistics.

The key to success in these areas will be collaboration between governments and private sectors. With competition increasing for so many resources and capabilities—and with the prosperity of nations hanging in the balance—policymakers will be actively looking for the right combination of trade, tax, labor, energy, education, science, technology, and industrial policy levers to generate the best possible future for their citizens.

Categories: Innovation , Productivity. Greater Portland has a global reputation when it comes to advanced urban planning, leading edge sustainability, and a high quality of life for its citizens. Ninety percent of exports and export growth come from the top 10 exporting industries in the region including: manufacturing computer and electronics, primary metals, machinery, and transportation , royalties, professional services, and travel and tourism.

Categories: Regulatory and Policy Recommendations. IDs emerging global trends in advanced manufacturing. The National Intelligence Manager for Science and Technology in the Office of the Director of National Intelligence requested they study the evolution of traditional manufacturing to advanced manufacturing. This report explored the answers to the following questions:o What are converging trends in advanced manufacturing across technology areas? The key challenges and solutions outlined in Make: An American Manufacturing Movement appear below: 1.

Challenge: Fueling Investments in the Innovation and Production Economy from Start-up to Scale-up Solution: Enact fiscal reform, transform tax laws, regulations and other structural costs to spur investment, ramp up production, capitalize growth companies, and create skilled jobs 2. Challenge: Expanding U. China's overwhelming manufacturing cost advantage over the U. History has amply demonstrated that innovation in the public and private sectors is the most important key to long-term U.

India was ranked as the 58th most competitive economy with a score of India jumped five spots from , the largest gain among G20 economies. The report publishes the Global Competitiveness Index, ranking countries on the basis of 98 indicators organised into 12 pillars. Countries such as Germany and Switzerland set the global standards for innovation. Insecurity and weak institutions are two of the biggest challenges for most countries in the region.

Mauritius 49th leads the region, ahead of South Africa and nearly 91 places ahead of Chad th.

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WEF: Top 10 global competitiveness countries

Global Competitiveness Index 4. In other words, among the determinants of adjustment and adaptation ability of a region may be mentioned the regional innovation-learning system, modern infrastructure, highly skilled workforce innovative and willing to engage in entrepreneurial activities , and appropriate funding schemes and diversified sectoral basis [ 28 , 33 ]—which do not differ from the success factors envisaged by regional competitiveness. The literature reveals various types of economic resilience , based on economic performance, on how to respond to shocks both negative and positive , and on other determinant factors [ 34 ].

An important factor is the time interval used to assess resilience, since the long-term resilience trajectory may be different, even if the end result may be similar and the possible path determines the optimal policy for the region [ 35 ]. For instance, Martin see [ 30 ] identifies four dimensions of regional resilience : resilience as resistance, recovery, structural reorientation, and renewal or resumption of a growth path. The first two roughly correspond to the concepts of engineering resilience, which focus on the resistance of a system to disturbances and the speed it takes to return to its pre-shock state, and ecological resilience, which analyzes the magnitude of shocks that can be absorbed before the system changes form, function, or position, while the two latter dimensions provide a rather evolutionary perspective.

Increasing interest in the evolutionary approach to regional resilience was more recently revealed see, for instance, [ 27 , 28 , 36 ] , which is focused more on the long-term evolution of regions and their ability to adapt and reconfigure their industrial, technological, and institutional structures in an evolving and dynamic economic system. In such a framework, resilience seen as the capacity of a region to sustain long-term development is regarded as important as the capacity of the same region to respond positively to short-term shocks [ 27 ].

Resilience depends on the ability of regions to cope with structural change and to create new growth paths, in order to offset inevitable processes of stagnation and decline in their regional economy, but the basic need for fundamental economic renewal is more acutely felt by regions in times of crisis. Resilience is fundamentally a dynamic process , implying the ability of a regional economy to reconfigure and adapt continuously its structure in order to maintain an acceptable growth path or the ability to create new variety or novelty in response to external shocks [ 27 , 30 ].

However, the ability of a region to permanently reinvent itself might be blocked by the regional socioeconomic conditions, and in such a context, disturbances, which are often reinforced by recessions, may have positive effects by releasing potential for structural adaptation [ 30 ]. Resilience trajectory is thus multidimensional with respect to strength resistance , recovery, reorientation, and renewal and is directly related to the past economic performance previous to a shock [ 33 ].

More recently, interest in regional vulnerability to shocks and their trajectories to overcome and return to growth increased with the onset of the global economic crisis in , a number of European studies highlighting the differences between the different regions of Europe regarding the size of recession and the subsequent economic recovery see [ 33 , 37 — 39 ]. The crisis hits the EU regions during a phase of progressive regional convergence : between and , the regional disparities in GDP per capita were shrinking, largely due to the positive dynamics of the regions in the NMS of the European Union, a convergence trend that came to a halt and then reverted toward divergence in and [ 40 ].

In the European Union, the issue of economic convergence among the member states and among their regions is linked with the main objective of the Union. The Maastricht Treaty includes three economic objectives concerning convergence: the harmonious and sustainable development of economic activities, the high performance level of economic activities, and the economic and social cohesion and solidarity of the member states. The economic and social cohesion at regional level is a fundamental objective of the European Union EU , being considered as a key driving force for the integration of people and territory.

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It was especially reinforced in the Treaty of the European Union, which called for balanced development, as well as economic and social cohesion, but the need for policies to promote both regional development and a reduction in the economic disparities across regions has increased remarkably after the latest waves of enlargement [ 41 ]. Economic growth theories neoclassical-exogenous growth and endogenous growth and economic integration theories are often associated with the processes of convergence or divergence see [ 44 — 46 ].

Different definitions of convergence are found in the literature, which correspond to different concepts related to convergence, two types of convergence being identified in the neoclassical growth theories : 1 absolute convergence also known as the beta convergence , which implies that poorer countries or regions tend to grow faster per capita than the rich ones, and 2 conditional convergence the sigma convergence , which implies that an economy grows faster the further it is from its steady-state value, regardless if it is poor or rich [ 44 ].

Though much contested see [ 48 ] , in the literature on economic growth, the groups of economies were identified and analyzed countries or regions that present homogeneous economic growth patterns and that converge toward a common steady state, called the convergence clubs see [ 49 — 52 ].

Finally, the integration theories with neoclassical or endogenous growth bases may argue both a tendency toward regional convergence and toward regional divergence in the EU [ 46 ]. Real convergence is a process endogenous to each national entity, and the convergence of regions within the member states is very important for improving European cohesion and the competitiveness and efficiency of the Single Market.

Real convergence was one of the major objectives of the EU cohesion policy in the period —, and it has covered the poorest EU regions, defined as convergence regions. The key objective in these regions, eligible for the cohesion policy, involved the stimulation of growth potential to maintain and achieve high growth rates in such regions [ 54 ]. The overall objective of the EU regarding real convergence also overlaps with and requires the territorial convergence. Sustainability of economic growth and closing the development gaps among the EU countries involve both structural reforms and, especially, a balanced contribution to the national development of regions and subregions, according to their potential, and the cohesion policy reform aims to ensure maximization of regional contribution to growth by adapting the community assistance to the development of each region and by channeling resources to the key sectors for growth.

In accordance with its significance for the national and regional development policies in the EU and worldwide, the regional convergence issues were highly debated in the economic literature, especially since the beginning of the s, when a sharp increase in the scholarly interest has occurred in the area of regional income convergence [ 55 ]. Regional inequality has been intensively studied since the s, but it has gained increasing attention more recently, mainly because of developments in the fields of economic integration, economic geography, and endogenous growth and development [ 56 ].

In literature, theories of convergence and divergence examine the reasons for diminishing or increasing the disparities between the rich and the poor regions and, in the case of divergence, explain the persistence of such disparities.

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As stated by Barro and Sala-i-Martin see [ 57 ] , regional income convergence applies if a poor region tends to grow faster than a rich one, such that the poor region catches up with the rich region in terms of the level of per capita income [ 55 ]. Different definitions of convergence can be found, corresponding to different concepts related to convergence, based on economic growth theories neoclassical growth model and endogenous growth theory or on economic integration theories neoclassical or endogenous growth bases — e.

Since the s, the most prominent theoretical and empirical models of regional economic growth convergence were considered to be those established by Barro and Sala-i-Martin [ 44 , 57 ] and Romer [ 58 ]. A large body of devoted literature has suggested the presence of a polarization pattern in Europe, including two differentiated groups of regions or convergence clubs : one of relatively poor regions and the other of regions evolving around the mean income. Moreover, such studies also revealed that such a polarization pattern has been a persistent trend especially in the Western Europe over the last three decades e.

Moreover, the EU as a whole is accommodating the integration of the new member states and their regions, which at the moment of accession were economies in transition with levels of income per capita far below the EU average [ 10 , 41 ]. Last but not least, to all these add up the effects of the global financial and economic crisis, which might be of interest from the convergence point of view, since the recession that has disrupted the growth mechanisms has had an uneven impact across regions, affecting countries and regions differently depending on their responsiveness and reaction [ 41 , 59 ].

Instead of conclusions, we may say that by only examining the definitions and conceptual aspects regarding competitiveness, resilience, and convergence of regions, the complexity and dynamics of these domains are obvious. Considering competitiveness, resilience, and convergence of regions as specific continuous and very dynamic processes , rooted in the same economic foundations, their relationships and their relationships with other socioeconomic and policy domains reveal as increasingly complex and evolving. None of them is over-comprehensive; all of them may be examined through very different and divergent lenses without capturing their full meaning but also without diminishing their scientific and analytical relevance , and all of them may be quantified and visualized with the help of the same or similar instruments indicators, models, methods, techniques, and methodologies.

Their importance may vary with the momentarily shifts in the social, economic, and political priorities of nations, regions, and unions of nations, and their acuteness may painfully surface on the occasion of man-made or nature-induced events, but they will function as long as the human societies will exist in their current forms.

The Global Competitiveness of Regions by Robert Huggins

To know and understand them in a comprehensive fashion are a science, but to employ them to the benefit of all humans inhabiting the areas where they manifest themselves may be an art. The issues of regional economic growth and of reducing the development gaps between the EU regions have attracted attention especially after the creation of the Single European Market SEM and the European Monetary Union EMU , but at first the empirical research focused mostly on the discussion of convergence-divergence and types thereof.

Economic theories on competitiveness firstly focused largely on economic growth, stressing the importance of rise in revenues and prosperity — in accordance with the definitions of prosperity based on competitiveness. Most studies that modeled competitiveness used the Solow-Swan neoclassical model see [ 60 ] , which operates with assumptions such as the market with perfect competition, the absence of externalities, constant efficiencies of scale, and constant and positive elasticity between inputs of capital and labor. The most common method to describe the regional competitiveness performance is based on the decomposition of aggregate macroeconomic indicators , to identify the factors that determine economic growth, productivity, and regional development.

Such a system is usually based on the decomposition of GDP per capita , which is a general measure of national, regional, and social competitiveness see [ 61 ] and is determined by a combination of interrelated factors, among which we first mention labor productivity and unemployment rate, but also others, reflecting different determinants of competitiveness: main sectors of the economy , competitiveness being high if the sector with high labor productivity has a high share of employment in total population, and sectors of economic activity , the effect of sector labor productivity on competitiveness being dependent on the ratio of sector employment to the total number of population and on the share of sectoral GDP to global GDP.

Measurement of competitiveness based on competitiveness indices is also frequently used in literature, but it is difficult to develop an aggregate indicator for the assessment of regional competitiveness using defined elements. The index of competitiveness is a vague concept that cannot be measured directly, and in practice the main indicators of competitiveness are interrelated, being difficult to reveal causality. However, one may distinguish between the factors that determine competitiveness and its results.

Most such studies use global indices of competitiveness applied at national level for instance, the indices developed by the World Economic Forum and the International Institute for Management Development. In the European Union, an index of competitiveness of the regions has been developed Regional Competitiveness Index: RCI : for the NUTS-2 regions , starting from the methodology used by the World Economic Forum, which annually publishes the Global Competitiveness Report of the nations of the world, including 11 pillars and 74 indicators version organized into three groups basic competencies , determinants of efficiency , and determinants of innovation , covering a range of factors wider than the purely economic aspects.

The pillars of this indicator are basic competencies , i1 the quality of institutions, i2 macroeconomic stability, i3 infrastructure, i4 health, and i5 quality of primary and secondary education; determinants of efficiency , ii1 higher education and lifelong learning, ii2 labor market efficiency, and ii3 market size; determinants of innovation , iii1 openness to adopting new technologies technology awareness , iii2 business sophistication, and iii3 innovation. The i1—i5 pillars are more important for the less-developed regions while the iii1—iii3 pillars for the more advanced regions especially for those with a very high development level but also for the regions in transition from a lower to a higher development level.

A region with a good performance in the innovation group is expected to have a good performance in the Basic and Efficiency groups as they are instrumental in increasing levels of competitiveness. In this sense, Basic and Efficiency aspects may be considered as necessary conditions for good levels in Innovation aspects. Conversely, regions with poor or insufficient levels in the Basic group cannot be expected to perform well in the other two groups.

It is assumed that as regions move along the development path, their socioeconomic conditions change, and different determinants become more and more important for competitiveness.


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As a result, improving the competitiveness of more developed regions will require other priorities than for a less-developed region [ 23 , 24 ]. This is reflected by a weighting system that takes into account the stage of development. The RCI results of and showed a remarkable diversity of regional competitiveness in the European Union, both among the member states and within them.

The top ten competitive regions of the European Union belonged all to countries of the EU United Kingdom four regions and the Netherlands, Sweden, Germany, France, Luxembourg, and Denmark one region each — version In contrast, the last ten regions in the top of competitiveness are almost equally located in the EU member states Greece five regions and France one region and NMS Romania three regions and Bulgaria one region. Assessment of regional competitiveness based on multilevel systems of indicators is also commonly found in literature: for instance, the abovementioned pyramidal model of competitiveness [ 6 ], which builds upon both endogenous growth and development theories.