Competitiveness: From "Dangerous" Key Word to Future Compass. Economic Research and the Contribution of WIFO

Competitiveness is an important goal for economic policy and companies. However, it is defined in highly different ways, and this often results in contradictory economic policy conclusions. The present article shows the path from a purely cost-oriented point of view to a definition based on economic and societal goals. This definition allows consistent pursuit of a high-road strategy: it uses innovation, skills and ambitions to achieve high income levels, social cohesion and ecological excellence. On the basis of this concept, the competitiveness of European countries is measured more strongly based on broader welfare indicators than on per-capita income. None of the more successful European countries is pursuing a cost-oriented, low-road strategy.