Competitiveness in Argentina: micro-level perceptual evidence on education, digital skills, and firm innovation

Abstract

ABSTRACT: This study analyzes business perceptions of competitiveness in Argentina using a quantitative approach. Based on a national survey conducted in 2024 of 400 firms from different sectors and of varying sizes, 84 variables were collected and grouped into six key factors: institutional, labor, educational, financial, governance, and innovation-related. The overall objective is to examine the influence of these factors on the competitiveness of the industrial sector compared with other economic activities in the country, identifying their interactions and impact. Multiple correspondence analysis and hierarchical clustering were applied. The estimated results reveal strong sectoral inertia in opinions—favorable, neutral, or unfavorable—regarding Argentina’s current competitiveness conditions. The variables most strongly associated with favorable perceptions were the quality of university education, digital skills, internship programs, and the adoption of disruptive business models. By providing uncommon micro-level evidence for a middle-income economy, the study refines the emerging literature on competitiveness ecosystems and offers a baseline against which forthcoming reforms can be monitored. Policy recommendations emphasize a dual strategy: sustained investment in human capital—especially secondary education and digital capabilities—and macro-financial stabilization.