The Dutch lead the world in the cut-flower industry because of their research in flower cultivation, packaging, and shipping. Using this knowledge as a resource is an example of what Michael Porter would term

Factor conditions.

Explanation:

According to the Porter Diamond Theory of National Advantage, also known as the Porter Diamond which is a model used to describe and understand the competitive advantage a country has due to its possession of certain factors and how the government of a country can use this factors to improve its performance in the global market.

In this scenario, the Dutch lead the world in the cut-flower industry because of their research in flower cultivation, packaging, and shipping. Using this knowledge as a resource is an example of what Michael Porter would term factor conditions.

Factor conditions can be defined as a country's ability to transform its natural resources such as crude oil, gold, limestone, diamond etc, infrastructure and education into a competitive advantage over other countries in globally competitive economic environment.

Hence, the Dutch made use of education through the process of doing a research in flower cultivation, packaging and shipping. Therefore, this is a factor condition according to Porter’s diamond.

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