It is true that "competitiveness is not just unit labour cost" .Most commentators repeat the phrase, but fail to say what else determines/influences competitiveness. I would contend that the crucial determinant of competitiveness is "firm management".
I came across the lecture slides on "core modern management practices and firm organization" given at Stanford by Nick Bloom of Stanford and John Van Reenen of Stanford and LSE
(ss. the link is to the homepage of professor J. VanReenen)
The "course is built on 8 years of research by LSE, McKinsey & Stanford, with recent extensions with Accenture, the World Bank & European Bank for Reconstruction & Development. Interviewed about 6000 firms across Asia, Europe, US & South America"