Design and technological Innovation : What are France’s comparative advantages in the international competition ?

- Friedland Papers, December 2010, Issue 27

09/12/2010

Can design be considered as a comparative advantage in terms of international competition? Some economists still doubt whether it can. A survey carried out over the last decade with importers from numerous European countries, however, shows that alongside the technological aspects of products, their design can also be a real asset in terms of competitiveness.

Its impact is particularly significant in the area of consumer goods, a sector in which France still performs very respectably, in spite of increasing threats from foreign competition.

A less well-known point is that design and ergonomics also have a real influence on purchasing decisions concerning capital goods and even certain intermediate goods. Given that in this case neither the technology nor design of French products are particularly highly regarded, these criteria have a negative impact on our competitiveness, at least with regard to the most developed countries.

In addition to these results, the survey also shows that, whilst Germany is still unrivalled in terms of non-price competitiveness, there are also lessons to be learned from the Italians, who have mastered the art of compensating for relatively high production costs with design and technological innovation that are being increasingly well recognised.