Porter maintained that countries do well economically in large part because of this clustering of specialised skills and industries that, through dynamic competition between them, produce superior products and processes.
Manufacturers that master this new dynamic will thrive on services versus merely price competition.
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In its most recent annual report on mobile competition, the FCC described consumer mobile services as being shaped by an increasingly dynamic ecosystem, which includes not only the carriers but also handset manufacturers, operating systems developers, app providers and competition among broadband providers offering different technologies, including mobile, fiber, cable, and satellite networks.
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Therefore, commercial software is subject to a dynamic that doesn't exist in the world of Windows: competition.
Indeed, according to the Disruptive Competition project, one in six active patents relate just to the dynamic smartphone market.
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Also, monetary policy liberalization and increased competition in the banking system will be key to improving credit and capital access for dynamic private companies.
Competition on the Internet is just a click away and venture capitalists are continually funding new dynamic startups (which is not the case in the microprocessor or operating system markets).
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But Woods said many contracts were being awarded locally even when foreign firms offered a better price or a higher quality bid, and highlighted "complex public procurement procedures, unfair national preference and wavering commitment to competition and market liberalization" as key factors holding back the creation of a competitive and dynamic market.
Most recently, stiff competition and the rising cost of improving chips has made it even harder for surviving makers of dynamic random-access memory, the chips known as DRAMs that are used to store data in personal computers and server systems.
This dynamic of innovation by competitive underdogs is by no means limited to sports from software to warfare, competition sparks creativity, even when copying is sure to follow.
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