Vítor da Conceição Gonçalves

This paper focuses on the interconnections between sovereign debt and the competitiveness of nations in the aftermath of the recent sovereign debt crises in the Eurozone. Further, it identifies new challenges to improving competitiveness. Based on a deductive approach, we analyse secondary data regarding sovereign debt and competitiveness in 28 EU countries for the period from 2006 to 2017. We also look at the recent theoretical developments in the competitiveness of companies, nations, and regions with the goal of identifying the new challenges to Portuguese competitiveness. In the period under analysis, Greece, Ireland, and Portugal had considerable losses in competitiveness and increases in their sovereign debt ratio. Despite benefiting directly from Porter’s insights into improving the country’s competitiveness, the Portuguese sovereign debt ratio has increased steeply. A previous analysis identified a path; however, there are new challenges such as those associated with EU competitiveness, shared value, and smart connected products. These need to be considered to support the creation of new strategies and policies for a small and open economy. Based on our analysis, we argue that competitiveness-oriented policies must more explicitly consider the negative implications of sovereign debt, and must recognize the new challenges to competitiveness.

Purpose: – The purpose of this paper is to discuss the contribution of the Porter Report toward increasing the competitiveness of the Portuguese economy and highlights the factors that affected its operationalization. Design/methodology/approach: – This paper considers the contributions of the Porter Report, entitled “Building the Competitive Advantages of Portugal”, presented in 1994, particularly with regard to the recommended clusters and public policies, as well as the assessment and warnings provided by Michael Porter in 2002, examining both in the present perspective. Findings: – Although Michael Porter, in 2002, made a critical judgment about the country’s evolution since the 1994 report, it is clear that, on the one hand, the recommended development model attracted high attention and had positive repercussion in academic and business circles, while on the other hand, some of the objectives were achieved, albeit at a slower pace than would have been desirable. Political and economic context and the time period are relevant for all technological and geostrategic changes, among others. The accuracy of the diagnosis and the development model proposed by Michael Porter is confirmed and the difficulty in its implementation is highlighted. Originality/value: – The analysis of the Portuguese evolution after Porter’s recommendations is instrumental in understanding the competitiveness and development challenges faced by a small peripheral economy in the European integration process. Understanding these difficulties and successes is of utmost importance in improving the definition and in the implementation of policies focused on the competitiveness of countries and regions.