... advantage in one determinant usually leads to advantages in other determinants as well. For instance, favorable demand conditions generate fast saturation and, consequently, the need for extended selections and improved goods with new features, better designs, and enhanced services. This in turn creates related and supporting industries and encourages the formation of new businesses and spurs on rivalry between companies, which again encourages companies to invest and innovate constantly in order to stay competitive. This permanent interaction between the determinants is a condition precedent to creating and sustaining competitive advantage. 2. Michael Porter's evaluation of Great Britain's economy As stated in Michael Porter's Agenda for the United Kingdom (Porter, 1990), the British economy is struggling with several problems with regards to demand conditions, factor conditions, related and supporting industries, and rivalry. When it comes to factor conditions, Porter emphasizes explicitly that the UK has to improve the educational and training system, ...

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