Some complained that I have been too harsh in my post on Prof. Porter conference in Dubai. So II decided to give a broader account on the issues he stressed, as I recorded in my notes. They cover the general advice which is not specific to Dubai, although I choose those that are more relevant for Dubai and in general the GCC.
A sector where a local company is dominant rarely displays innovation and is competitive. In fact if a business is not forced to compete at home it will not be able to compete worldwide. Therefore it will essentially stagnate possibly under some form of explicit or veiled protectionist policy. Essentially a country needs both domestic and foreign companies to foster growth (the example of Wall Street or Silicon Valley are paradigmatic).
No country can be successful in all sectors. Core competencies and competitive advantages must be leveraged. This means that having too many clusters is not wise, because stretches the resources.
Competitiveness also requires sound macroeconomic policies (fiscal and monetary) because rarely growth is nurtured in a high inflation environment and in a bankrupt country and social infrastructure, ie education, rule of law, health and effcient political institutions.
And lastly Prof. Porter remarked that companies need to well managed, and decision making must be transparent, with official accountable for their decisions.
All in all few earth shaking novelties but definitely a useful list of reminders.