A portfolio strategy for locating operations in the new “multi‐polar world”

Purpose – To help businesses throw light on potential sources of geographic advantage, Accenture researchers assessed the competitiveness of countries using the five dimensions: talent, capital, resources, innovation, and consumers and trade. This paper aims to present the results of that assessment. Design/methodology/approach – For each of the five dimensions, Accenture researchers identified key indicators – characteristics that suggest how well positioned an economy is to compete in a multi‐polar world. They assessed each indicator using a range of primary and secondary data variables. Primary data were drawn from a global survey of more than 400 business leaders, conducted for Accenture by the Economist Intelligence Unit. Secondary data were drawn from sources such as the International Monetary Fund, the United Nations and the World Bank. Findings – The paper offers an up‐to‐date assessment of how national resources and capabilities foster competitive advantage based on five issues – talent, capital, resources, innovation, and consumers and trade. Practical implications – Locating to excel at innovation requires not just a focus on input factors – such as local investment in R&D and education – but also a focus on output measures – such as being able to locally produce valuable new products, services and business processes. Originality/value – For leaders of companies seeking to re‐locate to compete in a multi‐polar world – that is, one with a diffusion of economic power across a wider range of regions and countries – the article explains why the best choice is to execute a diversified geographic strategy.