The Analysis of East Asian Competitiveness: Lessons from the Hong Kong Experience

Abstract

Assessment of the Porter framework in the East Asian context is made difficult by the richness of the analysis and by treatments which have been more concerned to proffer new variants of the model than to evaluate that which already exists. This article attempts a more systematic approach, applying the Porter framework to the Hong Kong experience in order to examine the issues which arise. Ambiguities with respect to definition and the object of analysis are first considered and the validity of Porter's generalizations is then examined for the Hong Kong case. If the approach is regarded as a ‘theory’, then it has a number of major defects. On the other hand, it is very useful as a means of identifying and organizing the relevant information. The ‘diamond’ model does not identify the universally required determinants of competitiveness, but it provides a useful ‘checklist’. Similarly, the ‘cluster charts’ provide an investigative tool for the identification of linkages amongst sectors.