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5 th PPD Workshop June 2, 2010 Vienna Benjamin Herzberg Uriel Levy Amy Cogan Wares

P ublic- P rivate D ialogue For Sector Competitiveness. 5 th PPD Workshop June 2, 2010 Vienna Benjamin Herzberg Uriel Levy Amy Cogan Wares World Bank Group PPD Global Product Team. 1. National PPD with Sector Component. Sectoral WG are common in national PPDs.

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5 th PPD Workshop June 2, 2010 Vienna Benjamin Herzberg Uriel Levy Amy Cogan Wares

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  1. Public-Private Dialogue For Sector Competitiveness 5th PPD Workshop June 2, 2010 Vienna Benjamin Herzberg Uriel Levy Amy Cogan Wares World Bank Group PPD Global Product Team 1

  2. National PPD with Sector Component Sectoral WG are common in national PPDs 2009 PPD review by Malcolm Toland Herzberg, Levy, Wares, 2010 2

  3. National PPD with Sector Component Works well with removing administrative burdens but perhaps limited impact in terms of sector competitiveness • Large companies tend to abandon the WG process along the way • Heavy set-up tends to burn political capital quickly • Limited information sharing unless feel extremely secure or obvious benefits • PS gathers in order to remove direct constraints (e.g. business environment) Herzberg, Levy, Wares, 2010

  4. Move toward Competitiveness… Partnerships Competitiveness is restrained by six basic structural factors. Isolated competitiveness exists, but highly competitive firms limited to isolated first movers, innovators, sometime foreign link. Some competitiveness in firms benefiting from conjuncture but hardly sustainable. Herzberg, 2010 Herzberg, Levy, Wares, 2010

  5. …through competitiveness partnerships Skills – Labor - HR RegulationsTaxation Technology - Innovation – R&D f f e e e e d f f d f f c c b d d d d c c Competi-tiveness Partnership b b b A A b b e c c e e c c e b b c c b d d b b d d d c c b f f f f d e e e e Financing ExternalFactors f f Herzberg, 2010 Infrastructure • Competitiveness partnership initiatives are a tool to discover and address structural gaps in competitiveness environment beyond individual firms. They help devise sound industrial sector policy. Gaps are identified and addressed through coordinated joint actions. The CPI results in bringing a group of lesser performing individual firms to “A” level. Herzberg, Levy, Wares, 2010 5

  6. …through competitiveness partnerships Skills – Labor - HR RegulationsTaxation Technology - Innovation – R&D f f e e e e d f f d f f c c b d d d d c c Competi-tiveness Partnership b b b A A b b e c c e e c c e b b c c b d d b b d d d c c b f f f f d e e e e Financing ExternalFactors f f Herzberg, 2010 Infrastructure • Competitiveness partnership initiatives are a tool to discover and address structural gaps in competitiveness environment beyond individual firms. They help devise sound industrial sector policy. Gaps are identified and addressed through coordinated joint actions. The CPI results in bringing a group of lesser performing individual firms to “A” level. Herzberg, Levy, Wares, 2010 6

  7. Where do you start? • Where is there latent competitive advantage (in which sector?), which a CPI would reveal? • What specific gaps can a CPI bridge for given sectors and what opportunities exist for joint actions that will improve competitiveness? • What is the process to construct and implement the CPI action plan? Herzberg, Levy, Wares, 2010

  8. Identifying opportunities Competitive Potential + Feasibility of CPI Herzberg, Levy, Wares, 2010

  9. Sector structure? Herzberg, Levy, Wares, 2010

  10. Identify specific constraints Skills – Labor - HR f RegulationsTaxation Technology - Innovation – R&D e e f f d d d c c b b b e c c e A b b c c b d d d f f e e f Financing ExternalFactors Infrastructure Herzberg, Levy, Wares, 2010

  11. Supply chain constraints + FDI potential? Herzberg, Levy, Wares, 2010

  12. From diagnosis to joint action • Conduct research based on scientific approach • Participatory approach to communicate research findings - Workshops with private sector, government, others • Identify joint actions that will improve competitiveness • Prioritize and implement action plan Herzberg, Levy, Wares, 2010

  13. Types of actions • Feasibility studies • Benchmarking • Market information • Joint promotion, FDI attraction • Research partnerships (university/skills) • Specialized infrastructure, financing, training • Emphasis on activities with spillover effects • CPI set up, financing, organizational process Actions  Action Groups  Structure to support those and future Action Groups Herzberg, Levy, Wares, 2010

  14. Structure to support action AG AG Action Groups AG AG AG Herzberg, Levy, Wares, 2010

  15. Structure to support action AG AG Action Groups AG AG AG Herzberg, Levy, Wares, 2010

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