Context for firm strategy and rivalry • A local context that encourages efficiency, investment, and sustained upgrading • Open and vigorous competition among locally based rivals Related and supporting industries • Presence of capable, locally-based suppliers and firms in related fields • Presence of clusters instead of isolated industries Factor (input) conditions High quality specialized inputs available to firms: • human resources • physical infrastructure • capital resources • scientific and technological infrastructure • administrative infrastructure • information infrastructure • natural resources Demand conditions • Sophisticated and demanding local customer needs • Unusual local demand in specialized segments that can be served globally • Local market needs that anticipate those elsewhere

Source: Porter and Ketels 2002.

back