This presentation is part of: F20-2 International Factor Movements and International Business

COMPETITIVENESS OF POLISH ECONOMY AND DEVELOPMENT OF CLUSTERS

Szczepan Figiel, Ph.D., International Center for Business and Public Management, University of Warmia and Mazury, ul. Prawochenskiego 19, Olsztyn, 10-720, Poland

Economic welfare of a country is determined by competitiveness of its economy dependent on lots of interconnected factors of quantitative and qualitative nature. Competitiveness – irrespective of differences in defining it – in general is considered as a relative category, what means that their assessment has a comparative character. The subject for comparisons is existence of factors considered as determinants of competitiveness and degree of intensity of symptoms manifesting that competitiveness. Results of research regarding economies in various countries indicate, that taking a dynamic approach, economic and social policies as well as system of institutional regulations are of key and increasing importance. Poland’s position in the world competitiveness rankings is hard to accept as a satisfactory one. According to the Global Competitiveness Index Report, 2006-07, Poland is the least competitive economy in the group of EU-25 countries. It occupies 48th place right behind Greece and well behind Estonia (25), Czech Republic (29) and Slovenia (33) being the leaders in Central and Eastern Europe. The main weakness stems from the low quality and effectiveness of institutions, what resulted only in 73rd position for Poland, the worst among the 9 groups of factors, so-called pillars determining the level of productivity and competitiveness. In the ranking included in the 2007-08 Global Competitiveness Report Poland’s position has worsened. These assessments correspond with the results of a very comprehensive study by Ketels and Sölvell (2006) who clearly pointed out that Poland is lagging behind in terms of occurrence and strength of business clusters, considered more and more commonly as a main driving force of the economic development. Taking as basis for analysis the data and findings included in the above mentioned sources an attempt was made to identify a connectedness between various elements consisting of the aggregated assessment of competitiveness of Polish economy in the international rankings, and widespread occurrence and extent of development of business clusters. The aim of the conducted analysis was also identification of constraints of their formation and development. A special attention was paid to the quality of the business environment. A hypothesis was formulated that the main determinant of the process of successful clusters formation and development is the level of social capital accumulated in a particular business environment.