Executive Forum 2002
25-28 September
Montreux, Switzerland
Managing Competitive Advantage: The Values of National Strategy
Friday, 27 September
Session 3: Adding Value -- Building
Value-Addition Alliances - What Works?
The Issue:
Two critical objectives
of export strategy are to:
maximize local content (labour,
materials, production process, entrepreneurship, management and
finance) of the existing export base; and
generate business complementarities
that will broaden the export base (products and services) and
lead to the emergence of new areas of competitiveness.
Both objectives involve
the value-addition alliances within, and among local industries.
Developing
country strategy-makers do not give adequate attention to promoting the
development of in-country value-addition alliances. Currently,
value-addition is largely seen as a result of foreign direct investment
or transfer of technology from other countries.
The Proposition:
Enormous scope exists for value-addition in the national
“export mix” through in-country partnerships (public sector-private
sector and private sector-private sector). National strategy-makers
should, therefore, pay greater attention to this aspect of competitive
advantage.
Various in-country value-addition schemes have been
introduced by developed and developing countries as part of national
export strategy. Some schemes work. Others don't. Some schemes work in
some countries, but not in others.
What lessons can be drawn from national experience? Are there
any common do's and don'ts that the national strategy-maker should be
aware of? Are there any "best practice" scenarios? What agencies in the
national trade support network should take the lead in
promoting/fostering value-addition alliances?
These questions will be the focus of debate during this session.