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Firms become competitive through innovation. Innovation can include technical improvements to the product or to the production process.
B. The Diamond - Four Determinants of National Competitive Advantage
? Four attributes of a nation comprise Porter's "Diamond" of national advantage. They are:
a. factor conditions (i.e. the nation's position in factors of production, such as skilled labour and infrastructure),
b. demand conditions (i.e. sophisticated customers in home market),
c. related and supporting industries, and
d. firm strategy, structure and rivalry (i.e. conditions for organization of companies, and the nature of domestic rivalry)...
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