Productivity, Innovation, and Competitiveness

Various factors such as the endowments present in a country; the quality of the business environment; the state of cluster development, the sophistication of companies in terms of operations and strategy, and the ability to innovate play pertinent roles in enhancing the competitiveness of a country and driving productivity. [...] PRODUCTIVITY, INNOVATION, AND COMPETITIVENESS: DIAGNOSTIC FOR APO MEMBER ECONOMIES | XIII EXECUTIVE SUMMARY Given the rising vulnerabilities and persisting challenges in the global economy, countries need to continually undertake development measures to innovate and boost productivity and growth across sectors and various sections of the population. [...] The emphasis on exports-led growth in the 1960s was particularly significant for the ROK due to two reasons: (1) pressure by the USA to increase focus on exports, thus leading to the implementation of exports-led policies; and (2) the predicted saturation of domestic Korean market, which garnered support and willingness from firms to abide by the approach. [...] In terms of trade and productivity, a country’s capability is derived from the set of goods it can produce and the quality and productivity of the produce. [...] The country’s economic policies have addressed major challenges from being one of the lowest-income-decile countries at the time of independence to reviving from war in the 1970s and adoption of market-oriented liberalization reforms in the 1980s based on the World Bank and IMF guidelines.