Unlike the International Product Cycle Theory, Porter's Diamond of National Advantage suggests that countries can maintain their competitive advantage in specific industries over long periods of time irrespective of the impact of labor costs.

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The Porter's Diamond model takes into account various factors such as factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry, which can contribute to a country's competitive advantage in a particular industry. This model suggests that countries can maintain their competitiveness over long periods of time, by continuously upgrading their inputs, leveraging the demand conditions, and supporting infrastructure and institutions. Labor costs are not the only deciding factor for a country's competitive advantage as per this model.