MBA 611 Business Economics
“UK COMPETITIVENESS:
MOVING TO THE NEXT STAGE”
MBA 611 – Business Economics
Lecturer:
Dr. Spyros Hadjidakis
Students:
Christina Piki
Antontis Chimonas
Vassilis Koumettou
Nicolas Hadjigeorgiou
Chrysovalanti Xanthou
Costs Of Production
Meaning of Costs
Measuring cost:
Implicit & explicit costs: economists analyse both
Profit = Total Revenue – Total Cost (implicit + explicit) Production
Factors Of Production:
• labour
• land and raw materials
• capital
• entrepreneurship
Long-run and Short-run Production:
• fixed and variable factors
• distinction between short run and long run The Short-Run
Production Function
• Total Physical Product(TPP)
• Average Physical
Product(APP)
• Marginal Physical
Product(MPP)
UK Competitiveness:
Moving To The Next Stage
May 2003: Michael Porter and Christian Ketels of Harvard
Bussiness School published a review of the UK’s competitiveness. Porter: “Economic development is achieved through a series of stages.”
Three significant stages:
1. The Factor-Driven
2. The Investment-Driven
3. The Innovation-Driven
UK Competitiveness:
Moving To The Next Stage
Industrial Clusters:
“Geographically proximate groups of interconnected companies, suppliers, service providers, and associated institutions in a particular field, linked by commonalties and complementarities.” Industrial Clusters
• Improve Productivity
• Aid Innovation
• Contribute to the formation of new business UK’s industrial clusters weak New stage productivity growth and innovation through cluster development competitiveness The Top UK industry clusters ranked by employment, 2006
(Source: EU Cluster Observatory, www.clusterobservatory.eu)
Industrial Clusters - UK
• The UK leads the rest of Europe in
Business Services, Finance and
Transportation, Logistical Services.
• The importance of location
e.g. The UK has been successful in developing clusters in the provision of
Education and Knowledge Creation in
Oxford, Cambridge and East Scotland.
Industrial Clusters
MOVING TO THE NEXT STAGE”
MBA 611 – Business Economics
Lecturer:
Dr. Spyros Hadjidakis
Students:
Christina Piki
Antontis Chimonas
Vassilis Koumettou
Nicolas Hadjigeorgiou
Chrysovalanti Xanthou
Costs Of Production
Meaning of Costs
Measuring cost:
Implicit & explicit costs: economists analyse both
Profit = Total Revenue – Total Cost (implicit + explicit) Production
Factors Of Production:
• labour
• land and raw materials
• capital
• entrepreneurship
Long-run and Short-run Production:
• fixed and variable factors
• distinction between short run and long run The Short-Run
Production Function
• Total Physical Product(TPP)
• Average Physical
Product(APP)
• Marginal Physical
Product(MPP)
UK Competitiveness:
Moving To The Next Stage
May 2003: Michael Porter and Christian Ketels of Harvard
Bussiness School published a review of the UK’s competitiveness. Porter: “Economic development is achieved through a series of stages.”
Three significant stages:
1. The Factor-Driven
2. The Investment-Driven
3. The Innovation-Driven
UK Competitiveness:
Moving To The Next Stage
Industrial Clusters:
“Geographically proximate groups of interconnected companies, suppliers, service providers, and associated institutions in a particular field, linked by commonalties and complementarities.” Industrial Clusters
• Improve Productivity
• Aid Innovation
• Contribute to the formation of new business UK’s industrial clusters weak New stage productivity growth and innovation through cluster development competitiveness The Top UK industry clusters ranked by employment, 2006
(Source: EU Cluster Observatory, www.clusterobservatory.eu)
Industrial Clusters - UK
• The UK leads the rest of Europe in
Business Services, Finance and
Transportation, Logistical Services.
• The importance of location
e.g. The UK has been successful in developing clusters in the provision of
Education and Knowledge Creation in
Oxford, Cambridge and East Scotland.
Industrial Clusters