Contents -- Preface -- About the Authors -- Abbreviations -- Chapter 1 Competition, Competition Policy, and Growth -- Competition and Growth -- Product Market Regulation and Economic Performance -- Competition Policy -- Conclusion -- Notes -- References -- Chapter 2 Competitiveness and Its Indicators -- Elements of Competitiveness -- Defining Competitiveness -- Price Indicators of Competitiveness -- Nonprice Indicators of Competitiveness -- Doing Business: Measuring Business Regulations -- Conclusion -- Notes -- References -- Chapter 3 National Competitiveness -- Defining National Competitiveness -- Competitiveness Rankings -- Conclusion -- Notes -- References -- Chapter 4 Innovation Policy for Competitiveness -- Innovation: Definition and Measurements -- Innovation, Growth, and Competitiveness -- Policies for Innovation -- How Can Government Help? -- Conclusion -- Notes -- References -- Chapter 5 Competitiveness and Clusters -- Background to Clusters -- Cluster Initiatives -- Policy Implications -- Conclusion -- Notes -- References -- Box -- Box 2.1 Price and Nonprice Indicators of Competitiveness: The Case of Armenia -- Figures -- Figure 1.1 Markups in Manufacturing and Nonmanufacturing -- Figure 1.2 The Tree Structure of the Economy-wide PMR Indicator -- Figure 1.3 PMR in Accession and OECD Countries, Aggregate Level, 2008 -- Figure 1.4 Decomposition of PMR in Accession Countries, 2008 -- Figure 2.1 Business Environment Quality: The Diamond -- Figure 2.2 The Three Pillars of Trade Competitiveness -- Figure 2.3 Outcomes and Determinants of Competitiveness -- Figure B2.1.1 Armenia's Share of World Exports -- Figure B2.1.2 Nominal and Real Effective Exchange Rates for Armenia -- Figure B2.1.3 GDP Dynamics and Global Competitiveness Rankings for Armenia -- Figure 2.4 The 12 Pillars of Competitiveness.

Figure 2.5 Correlation between Doing Business Rankings and OECD Rankings of Product Market Regulation -- Figure 2.6 Correlation between Doing Business Rankings and World Economic Forum Rankings on Global Competitiveness -- Figure 3.1 REER Competitiveness Gains and Losses, Selected Countries, 2000-11 -- Figure 3.2 World Competitiveness Scoreboard 2011: Top 20 Economies -- Figure 3.3 Competitiveness Trends, 2005-11 -- Figure 3.4 Trends in the GCI Innovation Pillar Score, 2005-11 -- Figure 3.5 Variation in Individual Economies' Regulatory Environment (dispersion around average) -- Figure 3.6 Regions Ranked by Strength of Legal Institutions and Complexity and Cost of Regulatory Processes -- Figure 3.7 Impact of Regulatory Reform on Registration of New Firms -- Figure 4.1 New-to-Market Product Innovators as a Percentage of Innovative Firms by R&D Status, 2004-06 -- Figure 4.2 Contribution of Innovation to Growth in Ghana and the Republic of Korea, 1960-2005 -- Figure 4.3 Major Technical Systems from the Middle Ages through the Present -- Figure 4.4 Cross-Border Capital Inflows, 1985-2009 -- Figure 4.5 Global Growth in Real GDP, 2000-12 (quarterly change from prior year) -- Figure 4.6 Innovation Accounts for a Large Share of Labor Productivity Growth, Percentage Contributions, 1995-2006 -- Figure 4.7 Determinants of Technology Upgrading in Developing Countries -- Figure 4.8 Growing Innovation: The Government as Gardener -- Figure 4.9 Patenting Activity of Young Firms, 2005-07 -- Figure 5.1 An Agribusiness Cluster -- Figure 5.2 Determinants of Innovative Capacity -- Figure 5.3 Productivity and the Business Environment -- Figure 5.4 Dimensions of Clusters and Economic Policy -- Figure 5.5 One Approach to Developing a Cluster Initiative -- Figure 5.6 Policy Setting in which CIs Are Conducted.

Figure 5.7 Level of Trust between Firms and between the Private and Public Sector -- Figure 5.8 Objectives Considered Most Important for the CI -- Figure 5.9 Target Industries Selected by Donors or Government for the Purposes of CIs -- Figure 5.10 Cluster Strength -- Figure 5.11 Cluster Strength by Initiator-Developing and Transition Countries -- Figure 5.12 Entity Responsible for Initiating CI by Economy's Underlying Level of Development -- Figure 5.13 Influence in First Stage of Cluster Initiatives' Operation, by Sector and Economy Type -- Tables -- Table 1.1 Markups Estimates by Industry -- Table 1.2 Review of Studies Examining the Effect of PMR on Macroeconomic Outcomes -- Table 1.3 Regulation and Growth in GDP per Capita, Aggregate PMR -- Table 1.4 Regulation and Growth in GDP per Capita, Regulatory Domains -- Table 1.5 Regulation and Growth in GDP per Capita, Threshold Results -- Table 1.6 Administrative Barriers to Starting a Business, by Region -- Table 1.7 Structure, Conduct, and Performance of Selected Industries in Five Developing Economies -- Table 1.8 Persistence of Profitability in Emerging Markets and Advanced Markets -- Table 1.9 Competition Assessment Framework -- Table 2.1 The Who, What, and How of Firms' Competitiveness -- Table 2.2 Definition of Competitiveness and Its Underlying Elements -- Table 2.3 Price and Cost Indicators of Competitiveness -- Table 2.4 Price Measures of Competitiveness -- Table 2.5 Factors and Subfactors Comprising the National Environment (World Competitiveness Yearbook) -- Table 2.6 Subindex Weights and Income Thresholds for Stages of Development (Global Competitiveness Index) -- Table 2.7 Eleven Areas of Business Regulation Measured by Doing Business -- Table 3.1 Global Competitive Index for Top 10 Countries for 2011-12 versus 2005-06 and 2008-09 Rankings.

Table 3.2 Twelve Pillar Rankings for GCI Top 10 Countries, 2011-12 -- Table 3.3 GCI and Pillar Rankings for North America and Europe Region, Selected Countries, 2011-12 -- Table 3.4 GCI and Pillar Rankings for Asia and the Pacific Region, Selected Economies, 2011-12 -- Table 3.5 GCI and Pillar Rankings for Latin America and the Caribbean Region, Selected Countries, 2011-12 -- Table 3.6 GCI and Pillar Rankings for Middle East and North Africa Region, Selected Countries, 2011-12 -- Table 3.7 GCI and Pillar Scores-Sub-Saharan Africa, Selected Countries, 2011 -- Table 3.8 Top 10 Economies for Ease of Doing Business in 2013, versus 2012 and 2011 Rankings -- Table 3.9 Ten Economies Showing Most Improvement in Ease of Doing Business, 2011-13 -- Table 4.1 Simple Innovation Indicators -- Table 4.2 Extent of Economic Growth beyond Growth Predicted by Rates of Capital Accumulation, Selected Economies, 1960-89 -- Table 4.3 Conventional Breakdown of Sources of Growth, 1970-2000 -- Table 4.4 Level of Productivity in Countries of Various Incomes, 1970-2000 -- Table 4.5 Decomposition of the Predicted Growth in National Market Shares from an Estimated Empirical Model of Cross-Country Competitiveness, 1961-73 -- Table 4.6 Percentage of Rural and Urban Population with Access to Clean Water, 1990 and 2004 -- Table 4.7 Pace of Dissemination of Major Technologies, 1748-2000 -- Table 4.8 OECD and World Bank Policy Principles for Innovation -- Table 4.9 Summary of Innovation Policy Elements -- Table 5.1 Four Types of Economic Agglomerations -- Table 5.2 Social Science Contribution to Understanding of Clusters -- Table 5.3 Regional Specialization-Clusters in the United States, 2008, Selected Geographic Areas -- Table 5.4 Composition of Regional Economies, United States, 2004 -- Table 5.5 Comparison of Cluster Initiatives by Level of Economic Development.

Table 5.6 Possible Policy and Strategic Recommendations from a Cluster Initiative.