The Nature and Importance of Economic Competence

In this paper wc define economic competence as the ability to identify, expand, and exploit the opportunity sel. Economic competence constitutes the means through which technological possibilities are converted into economic activity. lt consists of four types of capabilities: (1) Se!ective or strategic; (2) organizational or coordinating; (3) technical; and (4) learning ability. The purpose of the paper is (1) to survey the study of economic competence as it appears In economic literature; (2) to give a meaningful and operational definition of economic competence as one of the factors contributing to macroeconomic growth; and (3) to suggest a methodology to generalize and link economic competence, as defined at the micro (firm, individual) level, to macroeconomic growth, through simulation on the micro-based macroeconomic Model of the ~wedish I;;conomic ~stem (MOSES). The NatUl'e and Importance of Economic Competence' by Bo Carlsson and Gunnar Eliasson