For the sixth consecutive year, Switzerland ranks #1 in global competitiveness on the new World Economic Forum 2014 Global Competitiveness Index (GCI).
Introduced in 2004, the GCI annually assesses 12 key factors that drive countries’ productivity and prosperity. The 2014 study measures 144 countries on what the World Economic Forum calls its 12 pillars of competitiveness: institutions, infrastructure, macroeconomic environment, health and primary education, labor market efficiency, financial market development, technological readiness, market size, business sophistication and innovation.
This year the report identifies uneven implementation of structural reforms across different regions and levels of development as the two biggest challenges to sustaining global growth. It also says that talent and innovation are the two areas where leaders in the public and private sectors need to collaborate better to achieve sustainable and inclusive economic development.
Switzerland seems to have developed the secret sauce for sustaining economic competitiveness. The country ranks in the top 10 of eight pillars. Switzerland’s top rated academic institutions, high spending on research and development and strong cooperation between the academic and business worlds continue to make it a perennial winner in the global competition.
Globally, Singapore ranks just behind Switzerland at number two, followed by: the United States, Finland, Germany, Japan, Hong Kong, the Netherlands, the United Kingdom and Sweden.
When it comes to innovation, though, Finland rises to the top, with Switzerland a close second. Other top countries for innovation are Israel, Japan, U.S., Germany, Sweden, the Netherlands, Singapore and Taiwan.
Looking at global competitiveness by region of the world, Switzerland tops Europe, Singapore leads Asia-Pacific, Chile is #1 in Latin America, the United Arab Emirates is tops in the Middle East and North Africa and South Africa leads all Sub-Saharan Africa countries.
Our neighboring countries also did well on the GCI Index. Canada ranks fifteenth globally and Mexico sixty-first, placing it fifth in Latin America’s top 10 most competitive countries.