Abstract:

The last decades of development of world economies have been marked by the transition to highly productive economies. The reasons for this state of affairs are mainly seen in the intensification of competitive forces in individual markets^[1], which force the introduction of new technologies and innovations. In view of this, it makes sense to ask what economic conditions are most conducive to strengthening the forces of market competition. The concept of competitiveness of economies is used to assess their economic condition and is analysed by looking for ways to achieve the highest possible levels of position and competitive ability. The competitiveness of an economy is determined by the strength of competition in its individual departments and branches. However, it is in the nature of economic entities to avoid the conditions in which they must be subject to the requirements of competition and to look for opportunities to benefit from a pension. The pursuit of the pension, however, lowers the productivity of the operation of the managing entities and makes the allocation of production resources sub-optimal. In conditions where none of the operating entities can take advantage of the market advantage, competition is born which forces continuous productivity growth. Otherwise, higher productivity is the result of competition, which eliminates the possibility of achieving a pension and forces a quick and effective reallocation of resources, as well as the search for and introduction of new technologies and innovations.