Chapter 3: Conceptual framework and analytical methodologies
A Detailed Analysis of Sources and Rankings
Michael Porter developed a comprehensive approach to national competitiveness, the so-called Diamond Model, in his book entitled The Competitive Advantage of Nations (Porter, 1990). The book was meant to succeed The Wealth of Nations (Smith, 1776) by redefining the meaning of national wealth. Porter’s Diamond Model was extended in two directions. One was the incorporation of multinational activities through the introduction of the Double Diamond Model (Rugman, 1991; Moon et al., 1998; Dunning, 2003).The other was the addition of human factors through the proposition of the 9-Factor Model (Cho, 1994). A new comprehensive model was introduced by integrating the concepts of the two models, the Double Diamond and the 9 Factor. The new model was christened the Double Diamond (DD)-based 9-Factor Model (the IPS model), which is the underlying theory of the IPS National Competitiveness Research.
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