Omega, Vol. 20, No. 2 137

point out some of the consequences that flow development and public recognition of the from it. In summary, these are: management of innovation;

(l) that the innovation factor is of major (8) that the latter of these involve achieving international accords in which a balance is

significance in any study of competitive- struck between attracting foreign compa- ness;

(2) that competitive innovation is a collective nies and the promotion of national indus- activity of the hierarchy of an industrial trial wellbeing.

sector; That much more study is required before we (3) that promoting innovation in the bier- can claim a proper understanding of this import-

archy's purchaser/supplier relations plays ant subject is abundantly clear. a vital part in making the whole sector more competitive than its constituent REFERENCES

parts; 1. Blackwell B and Eilon S (1991) The Global Challenge (4) that appropriate size (financial, market of lnnovation. Butterworth-Heinemann, Oxford.

reach, etc.) is a necessary condition to 2. Eilon S (1992) On competitiveness. Omega 20(1), compete in a given category of product; i-v.

(5) that this means that, at least, the lead 3. Gladwin TN and Walter I (1980) Multinationals under Fire. Wiley, New York.

enterprises in the hierarchy, if not now 4. Kaske K-H (1989) The importance of critical mass. then in the future, must be multinational; Financial Times (7 April).

(6) that governments are in competition to 5. Porter ME (Ed.), Research Colloquium (1986) provide the environment in which innova- Competition in Global Industries. Harvard Business

School Press, Boston, MA. tive industry is encouraged and, because

no nation can acquire a monopoly in this Sir Basil Blaekwell field, foreign multinational enterprise is (December 1991) attracted but on appropriate terms;

(7) that the former of these involve the High Newland Sherborne

whole educational system, the level of Dorset DT9 3AF investment in applied research and the UK

On Porter's Competitive Advantage of Nations

THE RECENT Editorial "On competitiveness" [1] strategy (or a matter of concern) for one need not reminded me that during a recent visit to New apply with equal force to the other. In any event, Zealand as the Erskin Lecturer at the University before carrying out the recommendations of the of Canterbury, I was invited to review the newlY "Porter Report" one needs to ask about their released "Porter Report", [2] as prepared by a task potential effects on the quality of life and the force formed under Porter's direction to conduct character of the people who will live this life in analyses and suggest a strategy for pulling the New Zealand. I assessed this quality and this country out of its present economic doldrums, character as being very high, even in the present All of the data in the report were directed to economic doldrums, and therefore invited my comparisons with other nations (e.g. Japan) which listeners to consider at least the quality of life issue showed New Zealand to be losing position relative by asking a question like "Would you rather live to other countries even in such basic dimensions in Japan or New Zealand?" This, it seemed to me, as GNP per capita. The thrust of the report is then was more basic (to a nation) than any of the directed to the need for moving New Zealand questions addressed in the "Porter Report". from an agricultural to an industrial economy Recent issues of the National Geographic ("high tech" preferred). The main recommen- magazine may be used to help answer this ques- dation is to reorient the country's educational tion by persons who have never visited either activities in order to provide what is needed for country. I can add some evidence by recording the success in effecting such a transition, experience of my own visit to Milford Sound, a

As I pointed out to my listeners: "A nation spectacularly beautiful (fjord-like) inlet on the is a place for living and thus differs from a southwest coast of New Zealand leading into the corporation--which is organized to supply goods Tasman sea. Upon arrival at this remote location or services to others in exchange for resources with I found, to my dismay, that it was impossible to which to compensate the corporation's owners get into the hotel, or even its dining room, because and employees." Hence, what may be a good it was filled with Japanese visitors.

138 Feedback

This experience suggested further thoughts for moving New Zealand along without possibly about what New Zealand might offer in the way grim portents for its future. Hence, I close by of resources--thoughts which were further re- noting that, to my surprise, I found that nothing enforced by a stopover in Hawaii, which has is said about this topic or the use of New become a major foreign exchange earner for the Zealand's public goods in the "Porter Report" US. New Zealand, too, has an abundance of just as nothing is said there about the non- scenery along with wide open spaces. In economic economic (quality-of-life) effects that might terms these can be regarded at "public goods" in accompany attempts to carry out the recommen- that they can be consumed by others without dations in this report. Hopefully, the people who diminishing the amounts which are available live in the present beauty and who enjoy the for enjoyment by New Zealanders. Indeed by salubrious quality of New Zealand as a country attracting foreign investment--and with a bit of will devote some attention to these matters, even prudent planning--these public goods can be though such attention is absent in the "Porter increased in quality and ease of access to New Report". Zealanders as well as others.

The main reorientation to accomplish this is a lot easier than anything suggested in the "Porter REFERENCES Report". It would involve only a minimum of 1. Eilon S (1992) On competitiveness. Omega 20(1), retraining of selected segments of New Zealand's i-v. present population and a redirection of its current 2. Crocomb GT, Enright MJ and Porter ME (1991)

Upgrading New Zealand's Competitive Advantage. tourist promotion and marketing efforts toward Oxford University Press, Auckland in Association the orient (Southeast Asia, Taiwan, Korea and with the New Zealand Trade Development Board. Japan) in place of the present focus on the US and western Europe. Judging from the influx of W W C o o p e r Japanese investment, as well as tourists, to (December 1991) Australia's Gold Coast, this should not be too

Graduate School of Business difficult to accomplish or too long in coming. University of Texas at Austin

Further pursuit of this topic is not needed here Austin, TX 78712 to consider still other alternatives and possibilities USA

An Apology

Dear Professor Eilon, ately preceding and following the two overlapping IT HAS RECEr~TLY been called to my attention paragraphs. Since the first drafts were written in

that the wording appearing in two paragraphs in 1988, I do not honestly know how the failure to "Comparing the allocative efficiencies of hospi- place quotation marks around this material oc- tals" by Morey, Fine and Loree, published in curred. I, as senior author on the paper, am Omega, Vol. 18, No. 1, pp. 71-83, 1990 (on p. 73, incredibly embarrassed by this unfortunate occur- paragraphs 2 and 3) are essentially identical to rence. Nevertheless, such sloppiness cannot be material appearing in "Measuring hospital per- condoned and I can assure you it will never formance: A non-parametric approach" by happen again. I publicly wish to offer my sincere Grosskopf and Valdmanis, published in Journal of apologies to Professors Grosskopf and Valdmanis Health Economics, Vol. 6, pp. 89-107, 1987. As and your readers for this transgression, you know, we reviewed extensively the Grosskopf and Valdmanis article in the literature review R C Morey portion of our article and compared our findings (November 1991) with those of Grosskopf and Valdmanis in the Tulane University Medical Center conclusions. Their article is referenced seven sep- New Orleans, LA 70112 arate times, including in the paragraphs immedi- USA