A new Harvard Business School survey found that more than half of surveyed alumni expect U.S. competitiveness to decline during the next three years.

The report, “Competitiveness At A Crossroads,” by professors Michael E. Porter, Jan W. Rivkin and Rosabeth Moss Kanter, underscores the pessimism about U.S. competitiveness at a time when leaders in Washington are doing very little, if anything, to meaningfully improve it. Improving competitiveness matters because, as the authors write, doing so “will allow firms in the U.S. to
 win in the global marketplace while lifting the living standards of the average American.” Many of the budget-cutting measures expected under sequestration will make achieving these goals more difficult.

Read the report: http://www.hbs.edu/competitiveness/survey/2013-02-28.html

According to the survey, 58% of surveyed alumni expect U.S. competitiveness to deteriorate vs. 25% who expect it to improve. That is, at least, fewer pessimists than found in the previous 2011 survey, which tallied them at 71%, but nonetheless a reminder of the gloom around one of the country’s most crucial challenges. The survey did find that there was less pessimism among the U.S. general public about the decline of America’s competitiveness than among the HBS alumni.

To that end, the survey’s respondents were aligned on the need for the private and public sectors to tackle key issues that are the subject of some of the fiercest political fights inside the Beltway.

“Overall, corporate tax reform, a sustainable federal budget, infrastructure investments, responsible new- energy extraction, and assertive action on international trade were compelling policy winners,” the report said. “They garnered majority support, left and right, from business leaders and the general public alike.”

The survey also found that companies in the manufacturing, education and healthcare sector were at the fore in working to shore up competitiveness while financial services were “the least active in taking steps that enhance U.S. competitiveness.”

Approximately 7,000 HBS alumni from around the world responded to the survey, which also captured the opinion of approximately 1,000 members of the U.S. general public.

Notably, the survey was done just before the November election. If the survey was conducted today, with sequestration going into effect at any moment, it is not unreasonable to expect the ranks of pessimists to have grown since then. At least, for now. Ultimately, a sense of well-placed optimism will depend on how public and private sector leaders navigate the towering political and economic obstacles of the coming months.

To see how they fare, stay tuned for next year’s HBS report.

Share on Facebook

Tweet