The main goal of overall industry performance analysis is to provide a sound knowledge foundation about the systematic ability of firms, within an industry, to effectively achieve key business objectives in the observed post-crisis period (2009-2013). We define the key business goal as quick, inclusive, profitable and productive growth, which increases the welfare of the main stakeholders – owners, employees and state. This analysis complements previously conducted analysis of export competitiveness and provides additional information about the suitability of an industry for firm development. The main purpose of overall performance analysis is to provide a holistic picture about industries’ ability to drive sustainable and inclusive economic growth, by looking at their strength, dynamics, and structure. The overall industry performance analysis will enable an in-depth look at industries’ main characteristics, through measurement of key performance indicators (KPI), such as relative number of successful firms within an industry, overall demand trends, profitability, and productivity, and thereby supplement the picture of industries’ competitive capabilities.

Performance has two main components: extent of growth and quality of growth. These components are derived from our definition of performance, which indicates that it is important for businesses to grow and expand quickly, but that it is also necessary for businesses to establish a long-term and vital basis for that growth. Quality of growth further decomposes to comprehensiveness, sustainability, profitability and productivity.

Extent of growth – the dynamism of an industry
Comprehensiveness of industry development
Profitability of industry
Productivity of industry