Snowflake model of regional competitiveness: Evidence from Serbia

Darko Vukovic,Dusan Markovic,Azra Hanic

doi:10.5937/intrev1602059v

Abstract

The competitiveness of the region is ability to be productive and maintain a high standard of living. In this paper, we have created Snowflake model of regional competitiveness considering not only economic and social factors, but also infrastructure, innovations, geo-natural variables, institutional factors, culture and tourism. This model can be applied in any country or group of countries. The model shows the competitiveness of the region in three ways: 1) quantitatively - by the index of regional competitiveness, 2) ranking the region compared to other regions and 3) it possesses visual characteristic - represents snowflake of competitiveness. As part of our analysis, we measured the regions of Serbia. The reason is that Serbia has the largest regional differences in Europe, which was an additional motive to test the model.

Highlights

The competitiveness of the region is ability to be productive and maintain a high standard of living
After the calculation of index values of all indicators, we have calculated the factors of regional competitiveness which are based on certain indicators
There are negative indicators that reduce the value of the represented factor, such as: waste, corruption and the share of the gray economy

Summary

Introduction

The competitiveness of the region is ability to be productive and maintain a high standard of living. We have created Snowflake model of regional competitiveness considering economic and social factors, and infrastructure, innovations, geo-natural variables, institutional factors, culture and tourism. Competitiveness is defined on the macro level (OECD 1992, European Commision 2003; Schwab,Porter 2007), micro level (IMD 2000, 2004; Krugman 1996; Powell 2001;Martin et al 2006), and from The Sixth Periodic Report (European Commission 1999) appears most definitions of competitiveness at the regional level (European Commision 2003; Huggins 2003; Gardiner et al 2004; Kitson et al 2004; Bristow, 2005; Meyer, Stamer 2008; Annoni, Kozovska 2010; Vukovic,Wei 2010; Vukovic et al 2012)

Objectives

Results

Conclusion