Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Working Knowledge
Business Research for Business Leaders
  • Browse All Articles
  • Popular Articles
  • Cold Call Podcast
  • Managing the Future of Work Podcast
  • About Us
  • Book
  • Leadership
  • Marketing
  • Finance
  • Management
  • Entrepreneurship
  • All Topics...
  • Topics
    • COVID-19
    • Entrepreneurship
    • Finance
    • Gender
    • Globalization
    • Leadership
    • Management
    • Negotiation
    • Social Enterprise
    • Strategy
  • Sections
    • Book
    • Podcasts
    • HBS Case
    • In Practice
    • Lessons from the Classroom
    • Op-Ed
    • Research & Ideas
    • Research Event
    • Sharpening Your Skills
    • What Do You Think?
    • Working Paper Summaries
  • Browse All
    Structural Transformation: A Competitiveness-based View
    05 Sep 2017Working Paper Summaries

    Structural Transformation: A Competitiveness-based View

    by Christian Ketels
    A critical challenge for many economies is how to accelerate structural change when market forces alone seem insufficient. This paper explores the relationship between two approaches. The Structural Transformation framework argues for identifying and supporting target sectors in line with ‘latent’ competitive advantages. The competitiveness framework emphasizes the need to systematically strengthen competitive advantages, with new sectors the outcome rather than the driver of competitiveness upgrading.
    LinkedIn
    Email

    Author Abstract

    Competitiveness research aims to enhance our understanding of the drivers of prosperity differences across locations and of policies that can sustainably raise a location’s prosperity level. The paper outlines key elements of the competitiveness framework and discusses how it relates to the idea of structural transformation. What emerges are significant similarities between the two approaches: They both take a granular and often sector-specific perspective on microeconomic structures and systems, moving beyond macroeconomic, economy-wide, or single-factor microeconomic explanations of prosperity and development. But the analysis also reveals meaningful differences between the two: Most fundamentally, the chapter argues, the competitiveness literature treats sectoral composition as a key but largely endogenous part of development, while structural economies conceptualizes it as a fundamental driver. Competitiveness policy is about leveraging existing clusters as a platform for upgrading microeconomic fundamentals, where structural policies aim to change the industrial composition of an economy more directly. While recent work has significantly narrowed the differences between the two approaches, the chapter points out where and how they still matter, especially for policy practice. Further dialogue between the approaches, the chapter concludes, could lead to actionable advice on more robust policies that drive both structural change and competitiveness upgrading.

    Paper Information

    • Full Working Paper Text
    • Working Paper Publication Date: May 2017
    • HBS Working Paper Number: African Development Bank Group Working Paper, No. 258
    • Faculty Unit(s):
      Trending
        • 28 Mar 2023
        • Research & Ideas

        The FDA’s Speedy Drug Approvals Are Safe: A Win-Win for Patients and Pharma Innovation

        • 25 Jan 2022
        • Research & Ideas

        More Proof That Money Can Buy Happiness (or a Life with Less Stress)

        • 23 Mar 2023
        • Research & Ideas

        As Climate Fears Mount, More Investors Turn to 'ESG' Funds Despite Few Rules

        • 01 Mar 2023
        • What Do You Think?

        How Much Does 'Deep Purpose' Matter to the Bottom Line?

        • 25 Feb 2019
        • Research & Ideas

        How Gender Stereotypes Kill a Woman’s Self-Confidence

    Christian H.M. Ketels
    Christian H.M. Ketels
    Principal Associate
    Contact
    Send an email
    → More Articles
    Find Related Articles
    • Competitive Strategy
    • Clusters
    • Growth and Development Strategy
    • Policy
    • Development Economics

    Sign up for our weekly newsletter

    Interested in improving your business? Learn about fresh research and ideas from Harvard Business School faculty.
    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    ǁ
    Campus Map
    Harvard Business School Working Knowledge
    Baker Library | Bloomberg Center
    Soldiers Field
    Boston, MA 02163
    Email: Editor-in-Chief
    →Map & Directions
    →More Contact Information
    • Make a Gift
    • Site Map
    • Jobs
    • Harvard University
    • Trademarks
    • Policies
    • Accessibility
    • Digital Accessibility
    Copyright © President & Fellows of Harvard College