Based on research in ten leading trading nations, this book offers the first theory of competitiveness based on the causes of the productivity with which companies compete. The author shows how traditional comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and how broad macroeconomic accounts of competitiveness are insufficient. He introduces a new way to understand the competitive position of a nation (or other locations) in global competition that is now an integral part of international business thinking.