Benchmarking the Slovenian competitiveness by system of indicators

Purpose - This paper aims to evaluate Slovenian competitiveness by quantitative and by qualitative methods, and tries to explain why some countries develop faster than others. Design/methodology/approach - By observing other economies, it is possible to learn how to improve the development base at home. Many indicators of national competitiveness have been suggested. Broadly speaking, competitiveness can be measured with some indicators: terms of trade, current account balance, per capital income, productivity growth, high-tech export (percent), expenditure on R&D and openness of economy. In addition, the systematic competitiveness by International Institute of Management Development of World Economic Forum methodology can be measured. Questionnaire indicators give us a more qualitative view on competitiveness. The modern way of measuring national competitiveness is using questionnaires, which allows evaluation of the dynamic evolution of one economy, the qualitative competitiveness and the expectations of the business managers. Managers often evaluate the quality of business environment in which they operate. They also try to forecast the economic situation of the country in the near future. Therefore, the combination of statistical data and indicators from questionnaires is the best way to measure national competitiveness. Findings - Countries with different infrastructures and economic-policy measures are indirectly competing to attract the investments of multinational companies, or, what is most interesting, profit-making industries. For small open economy like Slovenia, internationalization at all levels is essential for long-term economic growth. Research limitations/implications - Slovenian enterprises neglect certain non-price factors of competitiveness that constitute the key element in modern competition. Exports by Slovenian enterprises are thus still concentrated on non-differentiated products and services with lower value added but with an adequate level of quality. Originality/value - The competitiveness concept is introducing the benchmarking method on the economy level. As it is sometimes impossible to find the best solutions by analyzing only the home country, it is more common to analyze problems of the other countries to find solutions for our own problems. After the EU integration process, it can be seen that the benchmarking process is strongly implemented on the analytical as on the policy level.