Factors associated with competitiveness in the Portuguese manufacturing industry were investigated using questionnaire data from representative samples of companies in the Metropolitan Areas of Lisboa and Porto. Logistic regression revealed five factors common to competitiveness in the two areas. These correctly predicted company status (Low competitive/High competitive) for a little over 70% of all companies. In addition, “regional” factors were found related to competitiveness in one area but not the other. Overall, competitiveness was associated with Innovation and production efficiency, payment systems and salary costs, use and management of human resources and the use of external services.

keywords: competitiveness, manufacturing industry in the Lisbon and Oporto metropolitan areas, logistic regression.