This report consists of a series of tools for analyzing national competitiveness. The methodology collectively known as Measure-Analyze-Simulate-Implement (MASI) is foundationally applied in the NCR to address the policy implications for enhancing national competitiveness. The MASI approach includes the following four steps:
Measure: IPS Model for measuring national competitiveness.
The National Competitiveness Research , the 3-Year Moving Average Methodology is applied to the sub-factor level. This approach is to reduce the abrupt variations, which might arise due to a possible external shock during a certain year.
Analyze: 3×3 framework for classifying country/region groups and comparing countries/regions with similar competitiveness structure.
The research classifies more than 60 countries/regions based on their size and competitiveness in order to yield realistic analysis results. Countries/regions are first classified into large, medium, or small according to their size by combining the population and land size, and into strong, intermediary, or weak based on their competitiveness using the indicators calculated with the IPS model, and ultimately are classified into 9 segments (3X3). This classification enables the relative comparison of competitiveness of countries within the same group.
Simulate: Applying business strategy (e.g., Porter’s (1985) two generic strategies of cost or differentiation strategy) toward guiding an appropriate strategic choice for competitiveness enhancement.
Different weights are applied to different variables in the IPS model. For instance, in Cost Strategy, competition is based on natural resources and low labor cost, therefore "factor conditions" and "workers" in the model are given more weight; whereas for Differentiation Strategy, where competition is based on high cost and high value added, "demand conditions" and "professionals" are given more weight. Countries/regions are able to identify their competitiveness structure and appropriate strategy through this stimulation.
Implement: Practical strategies for enhancing national competitiveness, using Optimal Strategic Mix and Term-Priority Matrix at macro and micro level, respectively.
Optimal Strategic Mix is used to show appropriate policies in accordance with the stage of economic development from the macro level. Once the strategic implications are clarified, a series of concrete strategies suitable for each country at different stages of economic development should be followed. Such an approach will enhance the level of national competitiveness. Term-Priority Matrix can be utilized to suggest strategy guidelines for different terms and priorities at the micro level. Once countries/regions identify both strong and weak criteria, they can formulate the strategy planning for further competitiveness enhancement by combining the Terms and Priorities of policies into a single matrix.