American Competitiveness: The Difference Between Ranking and Actual Performance

In this paper, we attempt to look at the true state of American competitiveness. The usual approach to national competitiveness is by using Porter's Diamond, and while the Diamond is a well-accepted and tested tool, we believe that there are deeper aspects of national competitiveness that are n...

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Bibliographic Details
Published inCompetition forum Vol. 20; no. 1-2; pp. 19 - 29
Main Authors Mukherji, Ananda, Mukherji, Jyotsna
Format Journal Article
LanguageEnglish
Published Indiana American Society for Competitiveness 01.01.2022
Subjects
Balance of trade
China
Competition
Competitive advantage
Education
Foreign investment
Foreign policy
Gun violence
Productivity
Ratings & rankings
Social aspects
Society
Trade deficit
Variables
China
United States > US
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Summary:In this paper, we attempt to look at the true state of American competitiveness. The usual approach to national competitiveness is by using Porter's Diamond, and while the Diamond is a well-accepted and tested tool, we believe that there are deeper aspects of national competitiveness that are not captured by using the Porter's Diamond, which really looks at the visible superstructure. We believe, as we present in this paper, that the deeper substructure that truly creates competitiveness are a set of six variable: (1) patents and innovation, (2) education standards, (3) debt, (4) trade deficit, (5) foreign policy, and (6) societal. Each of the six variables are discussed in considerable detail and empirical evidence presented. The picture is a bleak one as the US trails far behind China in patents and innovation, with little to no hope of catching up. The US ranks poorly in education, especially in mathematics, when compared to students from other industrialized countries. There has been no improvement in the rankings over time. The US debt is unsustainable and the trade deficit is extremely large and growing. The US foreign policy, to much of the world, is muscular, coercive and aggressive, and is not conducive to creating true competitiveness. Finally, the level of societal violence, especially gun ownership and gun deaths is a matter of true concern. We do not present solutions but highlight the glaring issues that confront the US. One needs to assess whether the points made in this paper merit attention, whether these concerns need to be acknowledged, and finally whether they need to be addressed. Keywords: Performance,; Ranking; Actual State of competitiveness
ISSN:1545-2581