IMD World Competitiveness Yearbook 2014

Abstract

After 25 years of outstanding directorship under Professor Stephane Garelli, earlier this year I took the reins of a highly successful world-class institution, the IMD World Competitiveness Center. Over the years, the Center has pioneered the study of world competitiveness and in so doing has had a tremendous impact on economic policy and decision making around the world. Competitiveness helps us to understand the factors that facilitate prosperity. Prosperity goes beyond the economic performance of a country to encompass a variety of economic as well as non-economic dimensions. It is dynamic – constantly evolving to accommodate emerging factors such as technological changes. For this reason, competitiveness research must remain on its “toes” evolving simultaneously with the subject of its study. We at the IMD World Competitiveness Center do just that! Continuing with our groundbreaking work in the field, this edition of the IMD World Competitiveness Yearbook assesses the competitiveness of 60 countries employing over 338 criteria. Our project relies on the collaboration of our 55-strong network of Partner Institutes. Together we ensure the reliability of the data and the relevance of our research for companies and governments worldwide. While there is not one definite formula to achieve competitiveness, our 2014 results highlight the fundamental role of strong institutions in encouraging innovation and entrepreneurship to increase prosperity. Results also underline the significance of the attractiveness of a country and its image abroad as a place to conduct businesses. We note, in addition, the heterogeneity within regions: each region experiences successes and failures. In this sense, it is perhaps better to conceptualize competitiveness as a national phenomenon rather than a regional one.