International competitiveness and trade promotion policy from a network perspective

The international competitiveness of firms and trade promotion policy are analyzed from a network perspective that emphasizes the role and importance of interfirm relations and networks spanning industry and international boundaries. First, we identify two types of producer networks involved in the over-all value production system, that is, primary and ancillary producer nets. Second, we classify networks in terms of two factors that impact on their potential international competitiveness, that is, the location of networks in local or foreign markets and the presence of internationally competitive firms. This leads to the identification of different types of network situations that provide opportunities as well as threats to the international performance of firms operating in those networks and call for different types Of trade promotion policies. We discuss the key features of each situation and management and trade promotion policy implications arising.