Michael Porter’s Business Competitiveness Index: US #1

The United States and Germany remain atop the latest Business Competitiveness Index, with China continuing to slip in the rankings while India ascends, according to a report released from Michael Porter’s Institute for Strategy and Competitiveness.
The U.S., ranked number one in four of the last six years, scored high on business environment, financial markets, and innovative capacity. Germany, number two, benefited from its orientation on exports, the unique competitive positions of its companies, and the quality of its legal and regulatory framework.
Rounding out the Top 10 were Finland, Switzerland, Denmark, Netherlands, Sweden, United Kingdom, Japan, and Hong Kong SAR. Hong Kong increased its ranking by seven, in part by strengthening management education, the efficacy of government boards, and local availability of process machinery, the ISC reported.
Other high-income nations increasing their ranking included Qatar, Norway, and Malta. Advanced economies on the decline included Cyprus, the Czech Republic, Taiwan, and France.
China, which has retreated in the rankings since 2002, fell nine spots to 64, according to the ISC. “This year’s decline was driven especially by higher levels of corruption, weaker assessment of buyer sophistication, and concerns about labor relations,” the study found. Also contributing were weak property rights, poor board governance, and low quality of management education. “Overall it is clear that euphoria about China is moderating as the realities of its competitiveness become more apparent,” the report concludes.
India moved up four rankings to 27, aided by improvements in its business environment and increasing levels of company sophistication.
Hmmmm. Porter’s Index should be put next to a Global Standard of Living Index. Then we can learn which countries are the best for both employees and employers. But that might be too much to ask from Harvard. Maybe Yale could do that…

Leave a Reply

Your email address will not be published. Required fields are marked *