Internationalizing Porter's Diamond

■ This article argues that Michael Porter's recent volume underestimates the significance of the globalization of production and markets for the competitive advantage of nations. This is because of the increasing interaction between the cross-border value added activities by multinational enterprises, which directly, or indirectly, impinge upon each of the components of the diamond of "national" competitive advantage. ■ The article explores the nature and form of this networking and how recent technological developments and regional integration have increased the interdependence of economic activity between the leading industrial nations of the world.