Identifying Opportunities to Improve Competitiveness through Innovation Illustrated on the Example of Hungary

Abstract

Due to the economic downturn there is an increased need for companies and economies to outperform their competitors and gain sustainable competitive adventage. However, competiveness is a complex concept. There are a number of definitions and methodologies available to define and measure competitiveness. This study examines the data of a widely referred competitiveness report issued by the World Economic Forum annually. The analysis focuses on how innovation contribute to the overall competitiveness, what are the direct and indirect influencing factors of in novation and how the overall competitiveness may be improved through improving the innovation related indicators. The process is illustrated on the example of Hungary in the context of its’ EU and regional competitive position, with the purpose to identify areas of opportunities to improve national competiveness through innovation