Maziar Noorbakhsh, Head of the Transformation, Innovation, and Productivity Commission at the Tehran Chamber of Commerce, Emphasizes the Vitality of Long-Term Competitiveness.
Balancing Long-Term Growth and Innovation in the Business Landscape
According to IDEA, Noorbakhsh, the head of the Transformation, Innovation, and Productivity Commission at the Tehran Chamber of Commerce, highlighted the critical importance of focusing on the competitiveness of businesses. He stressed that, at times, excessive and prolonged support can erode a business’s competitive edge, and once this support is withdrawn, businesses often find themselves facing setbacks and failures.
In essence, creating rent-seeking behavior and offering short-term support can indeed aid in success and growth, but it may lose its effectiveness in the long run due to changes in environmental conditions or shifting requirements. It is evident that in a free-market economy, supportive businesses that fail to strengthen and institutionalize competitiveness within themselves risk losing this essential component.
Noorbakhsh’s recommendation is for the government and decision-making bodies to consistently create tariff barriers and restrictions in the short term to support the development of domestic production. By either completely ceasing or restricting the import of similar products, the competitiveness of domestic enterprises can be weakened, leading to issues that echo in industries such as domestic automobile production.
Furthermore, one of the strategies for strengthening the competitiveness of enterprises involves the continuous reassessment and reinvention of their business models. Innovation in business models can create conditions enabling enterprises and individuals to add value over an extended period while minimizing their dependence on external support.
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