CREATING A COMPETITIVE ADVANTAGE: NEW CHALLENGES AHEAD

Abstract

Competitiveness is a central issue of a growing open, interconnected and integrated global economy, but it is not yet uniquely defined. There are many factors that determine competitiveness, and they change with the development of globalization, and even today, under the conditions of Industry 4.0. The coronavirus (COVID-19) pandemic has also provoked a situation in which both policies to foster competitiveness need to be adapted. In order to achieve competitiveness, countries must create factors and develop policies that will create the conditions for better positioning in the global market. In order to successfully integrate into new markets, but at the same time highlight and continue economic development, reevaluation of competitiveness determinants, as well as past positioning strategies, is necessary. The paper analyses the theoretical settings and determinants of competitiveness, as well as the challenges of today that economies should respond to. Understanding new features of the competitiveness can help policymakers develop approaches for enhancing their economic performance.