This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “Building the Microeconomic Foundations of Competitiveness,” in The Global Competitiveness Report (World Economic Forum), “Clusters and the New Competitive Agenda for Companies and Governments” in On Competition (Harvard Business School Press, 2008), “Creating Shared Value” (Harvard Business Review, Jan 2011), the Social Progress Index Report (Social Progress Imperative) and ongoing related research. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of Michael E. Porter. For further materials, see the website of the Institute for Strategy and Competitiveness (www.isc.hbs.edu), FSG (www.fsg.org) and the Social Progress Imperative (www.socialprogressimperative.org). Mauritius Competitiveness Overview Professor Michael E. Porter Harvard Business School BSP International Conference Republic of Mauritius April 2 nd ,2014
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This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “Building the Microeconomic
Foundations of Competitiveness,” in The Global Competitiveness Report (World Economic Forum), “Clusters and the New Competitive Agenda for Companies and Governments” in On
Competition (Harvard Business School Press, 2008), “Creating Shared Value” (Harvard Business Review, Jan 2011), the Social Progress Index Report (Social Progress Imperative)
and ongoing related research. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,
photocopying, recording, or otherwise - without the permission of Michael E. Porter. For further materials, see the website of the Institute for Strategy and Competitiveness
(www.isc.hbs.edu), FSG (www.fsg.org) and the Social Progress Imperative (www.socialprogressimperative.org).
Mauritius Competitiveness Overview
Professor Michael E. Porter Harvard Business School
ISC Competitiveness Model Mauritius Competitiveness Profile, 2012
Mauritius’ GDP per capita rank is 58th
versus 140 countries
Source: Delgado, Mercedes, Christian Ketels, Michael E. Porter, and Scott Stern. “The Determinants of National Competitiveness.” NBER Working Paper Series, No. 18249, July 2012.
Macroeconomic Strengths and Weaknesses Mauritius, 2012
Government debt* 1
Effectiveness of law-making bodies 13
(Low) Organized crime 15
Efficiency of legal framework 20
Efficiency of legal framework to settle disputes 20
Efficiency of legal framework to challenge regulations 21
Property rights 29
Gov. effectiveness in reducing poverty and inequality 30
Judicial independence 30
(Low) Wastefulness of government spending 32
Transparency of government policymaking 32
Accessibility of healthcare services 34
Rule of Law (WB) 35
Control of Corruption (WB) 38
Voice and Accountability (WB) 39
(Low) Irregular payments by firms 40
Ethical behavior of firms 40
Safety 41
(Low) Diversion of public funds 43
Quality of primary education 44
Quality of healthcare services 46
(Low) Tuberculosis incidence 50
Public trust of politicians 50
Reliability of police services 51
Freedom of the press 53
(Low) Favoritism in decisions of government officials 55
(Low) Business costs of crime and violence 57
(Low) Gender inequality 59
Government surplus/deficit 60
(Low) Infant mortality 66
Secondary enrollment 66
(Low) Malaria incidence 68
Primary enrollment 70
Inflation 77
Health expenditure 80
Life expectancy 81
Note: Rank versus 140 countries; overall, Mauritius ranks 58th in 2012 PPP adjusted GDP per capita and 37th in Global Competitiveness.
*Each of the 105 countries judged to have government debt within a safe range are assigned rank 1
Source: Delgado, Mercedes, Christian Ketels, Michael E. Porter, and Scott Stern. “The Determinants of National Competitiveness.” NBER Working Paper Series, No. 18249, July 2012.
Sophistication of Company Operations and Strategy Mauritius, 2012
Value chain breadth 26
Control of international distribution 29
Extent of staff training 34
Nature of competitive advantage 35
Degree of customer orientation 39
Organizational practices 39
Internationalization of firms 41
Production process sophistication 43
Extent of incentive compensation 43
Reliance on professional management 44
Strategy and operational effectiveness 51
Prevalence of foreign technology licensing 52
Firm-level technology absorption 53
Willingness to delegate authority 55
Extent of marketing 58
Company spending on R&D 84
Capacity for innovation 108
Note: Rank versus 140 countries; overall, Mauritius ranks 58th in 2012 PPP adjusted GDP per capita and 37th in Global Competitiveness
Source: Delgado, Mercedes, Christian Ketels, Michael E. Porter, and Scott Stern. “The Determinants of National Competitiveness.” NBER Working Paper Series, No. 18249, July 2012.
• Successful economic development is a process of successive upgrading, in which the business environment improves to enable increasingly sophisticated ways of competing
• Local rules and incentives that
encourage investment and productivity
– e.g. incentives for capital investments,
IP protection
• Sound corporate governance
• Open and vigorous local competition
− Openness to competition
− Strict competition laws • Improving access to high quality
business inputs
– Qualified human resources
– Capital availability
– Physical infrastructure
– Scientific and technological
infrastructure
– Administrative and regulatory
infrastructure • Availability and quality of suppliers and
Number of procedures required to start a business 25
Capital market infrastructure 26
Ease of access to loans 32
Financial market sophistication 33
(Low) Burden of government regulation 34
Quality of the educational system 34
Domestic credit to private sector 37
Quality of math and science education 37
Financing through local equity market 38
(Low) Burden of customs procedures 40
Telephone lines per 100 population 42
Quality of port infrastructure 45
Quality of roads 48
Quality of air transport infrastructure 48
Venture capital availability 51
Logistical infrastructure 55
(Low) Brain drain 57
Quality of management schools 60
Innovation infrastructure 62
Getting Credit Legal rights index (WB ) 63
Internet access in schools 64
Quality of electricity supply 66
Percentage of households with computer 68
Quality of domestic transport network: business 69
Communications infrastructure 71
Utility patents per million population 76
Internet users per 100 population 80
University-industry research collaboration 80
Tertiary enrollment 81
Mobile telephone subscribers per 100 population 84
Quality of scientific research institutions 85
Availability of scientists and engineers 101
Quality of railroad infrastructure 119
Note: Rank versus 140 countries; overall, Mauritius ranks 58th in 2012 PPP adjusted GDP per capita and 37th in Global Competitiveness
Source: Delgado, Mercedes, Christian Ketels, Michael E. Porter, and Scott Stern. “The Determinants of National Competitiveness.” NBER Working Paper Series, No. 18249, July 2012.
Note: Rank versus 140 countries; overall, Mauritius ranks 58th in 2012 PPP adjusted GDP per capita and 37th in Global Competitiveness
Source: Delgado, Mercedes, Christian Ketels, Michael E. Porter, and Scott Stern. “The Determinants of National Competitiveness.” NBER Working Paper Series, No. 18249, July 2012.
Note: Rank versus 140 countries; overall, Mauritius ranks 58th in 2012 PPP adjusted GDP per capita and 37th in Global Competitiveness
Source: Delgado, Mercedes, Christian Ketels, Michael E. Porter, and Scott Stern. “The Determinants of National Competitiveness.” NBER Working Paper Series, No. 18249, July 2012.
Note: Rank versus 140 countries; overall, Mauritius ranks 58th in 2012 PPP adjusted GDP per capita and 37th in Global Competitiveness
Source: Delgado, Mercedes, Christian Ketels, Michael E. Porter, and Scott Stern. “The Determinants of National Competitiveness.” NBER Working Paper Series, No. 18249, July 2012.
Empirical Evidence on Clusters Strong Clusters Drive Economic Performance
Source: “Cluster and Entrepreneurship” by Mercedes Delgado, Michael E. Porter, and Scott Stern (2010); “The Economic Performance of Regions” by Michael E. Porter (2003)