Rethinking National Competitiveness for Europe 2050: The Case of EU Countries

Abstract

The EU climate policy affects the competitiveness of both the European Union (EU) as a whole and individual member states, leading countries to search for new knowledge to increase their national competitiveness. However, there has been little empirical research about the implementation of green competitive strategies in the common European space from different countries’ perspectives. Using the Porter Hypothesis and system theory, this paper explores national competitive strategies that align with climate neutrality in the EU. We used index construction, clusterization, principal components analysis and trajectories change analysis to analyze data from the 24 EU countries from a 10-year period (2012–2021). The main findings reveal three green competitiveness profiles and five green competitiveness progress strategies in the EU. We found that EU countries have different strategies and conditions in terms of their transition towards climate neutrality and competitiveness, which ultimately lead to different rates of progress. Our results provide an initial basis for the development of nation-specific policies to achieve green competitiveness.