The Attractiveness-Competitiveness Matrix: A Methodology Used to Assist Policy Makers Select Priorities for Industrial Development Initiatives

Abstract

This paper contributes to industrial development methodology by advancing a simple matrix-The Attractiveness-Competitiveness matrix-that can be used to assist policy makers to determine what priorities should be placed on developing different sectors of their economies. It presents the matrix, illustrates how it was used to help the Polish government set priorities for which subsectors (Strategic Industry Units or SIUs) of the packaging industry it should support after the government had already decided to place a high priority on developing the packaging relative to other industry sectors. It categorizes and summarizes industrial policy initiatives and how they were determined. It also explores some of the government policies and programs that were suggested to support industry SIUs adjudged to be attractive, but that were not competitive yet could be made to become so.