Development and Finance from issue 2007/3

Gábor Hoványi

Business Development: ‘From Traditional Businesses to Companies Trading in Knowledge’

- Abstract -

JEL L-53

Businesses today know full well that having a core competence is imperative if they want to be competitive in a globally expanding world. A core competence is a special feature which not only helps a company to distinguish itself from its competitors but which also gives it a long-term competitive edge over them. In previous decades quite a few theoretical attempts have been made to generate a core competence for Hungary. None of these have had any success. The lesson to be drawn is clear: before enunciating any core competence, the country should first be ‘calibrated’ in a context of European or rather global supply and demand, and in terms of its competitive potential and limitations. Most of these are well-known: the country has few natural resources; the competitiveness of its industry is threatened by a chronic shortage of capital; its relatively small market of 10 million limits its ability to attract foreign direct investment.

Gábor Hoványi, DSc, habilitated professor (University of Pécs)

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