This book analyses the key factors determining current and future European competitiveness. It focuses in particular on the issues of internationalisation of firms and markets, the role of technology and innovation, and of continuing European integration, and deals with these issues on the level of firms, industries and countries. The competitiveness of the EC as a whole, relative to the USA and Japan, is also examined. Part 1 deals with internationalisation, the organisation of firms, and the activities of multinationals in Europe. Part 2 focuses on trends in technological competitiveness, and its importance in growth and trade performance. Part 3 is concerned with structural change, the integration of the European market, competition and mergers, the role of the public sector, and the role of cultural differences. The book ends by addressing the role of industrial policy in the future of the Eastern European economies.