Criticism
Criticism on Porter's national diamond model resolves around a number of assumptions that underlie it. As described by Davies and Ellis:
"sustained prosperity may be achieved without a nation becoming 'innovation-driven', strong 'diamonds' are not in place in the home bases of many internationally successful industries and inward foreign direct investment does not indicate a lack of 'competitiveness' or low national productivity".
Porter generalised from the American case; for developing countries the model may be wrong.
Read more about this topic: National Diamond
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