Identifying global growth opportunities and assessing the competitiveness of locations is top priority for businesses as well as for governments. Since the old laws of economic growth and competition have changed permanently with the rise of high growth emerging economies and the financial crisis The New Competition for Growth has started. In the new set of growth dynamics, besides a competitive business environment, innovation capabilities, a sustainable supply of talent and skilled labor are becoming most important in location decision making processes.
Since talent tends to be, like capital, more and more mobile. According to academics such as Richard Florida and futurologists like Daniel Altman this group will be looking for lifestyle hubs to live, work and venture and leaving the expensive ones where environmental climate and crime are problematic. Due to technological progress allowing people to work anywhere anytime the question is which countries offer not only a competitive business environment with high growth opportunities, but also offer the most attractive environment for talent to work.
To provide in depth insights in these dynamics and show the comparative advantages of countries, Global-Arena.com, in association with Experian, developed a comparative advantages analysis for global growth opportunities and the competitiveness of business environments and the attractiveness for global talent. Using Global-Arena.com’s unique ranking technology the most decisive location decision making factors were included in this comparison.
The combined ranking shows that the United States and Switzerland offer the best combination of a competitive business environment, attractive talent environment and the best fundamentals for future growth in terms of market potential, brand strength and extent of globalised economy and society. Other high ranked countries are Luxembourg, Qatar, the UK and Singapore.
However, the analysis also reveals significant differences between the countries when the location factors are weighted unequally. For example Switzerland, Singapore and Finland rank highest on most competitive business environment, whereas the US, Switzerland and France rank highest on talent environment. On the category with key growth drivers the countries Qatar, China are top ranked.
The comparative advantages benchmark to global high growth opportunities and the competitiveness of business environments and the attractiveness for global talent is developed in association with Experian and includes the latest Bloom Consulting Country Branding Ranking.
With the rise of high growth emerging economies and the financial crisis, the old laws of economic growth and competition have changed permanently and The New Competition for Growth has started. To identify global growth opportunities and assess the competitiveness Global-Arena developed a global comparative advantages benchmark of countries in order to provide detailed insights in the most decisive location selection criteria for competitive business environment, innovation capabilities and a sustainable supply of talent and skilled labor using its unique ranking technology
In total 89 countries we included, varying from Western developed countries such as United States, Switzerland, The Netherlands, the United Kingdom, Japan and Germany, to emerging economies such as the BRICs (Brazil, Russia, India and China), the Philippines, Indonesia, Singapore, Israel, Vietnam, Ecuador, Argentina, Saudi Arabia, Egypt, Oman, Bahrain, Turkey, Armenia and Nigeria.
Data Series (all based on latest available data)
Infrastructure Capacity (World Economic Forum Global Competitiveness Report items on quality of roads, railroads, air transport infrastructure, electricity supply and available airline seats kilometers)
Education Quality (World Economic Forum Global Competitiveness Report items on availability of research and training services and quality of management and business schools)
Quality of life (Lonely Planet figures on numbers of activities, shops and restaurants; UNESCO number of natural and cultural heritage sites; UN Human Development Index, UN number of homicide rates; Numbeo costs of housing and local purchase power; Yale University Environmental Performance Index)
Market Potential (IMF GDP per capita, Worldbank average annual GDP growth rate (last five years), UN population size; UN demographic forecast)
Initial Case Study settings
All location factors are equally weighted.
When all factors are equally weighted, United States and Switzerland are ranked highest. These countries offer the best combination of a competitive business environment, attractive environment for talent and best opportunities for future growth in terms of market potential, branding and extent of globalisation. However, the rank changes significantly when factors are weighted unequally.
The analysis shows for example that when high weights are assigned to the factors related to the Business Environment category (adjust all the business environment sliders to the far right, all the other sliders to the far left), Switzerland, Singapore and Finland are top ranked. The top position for Switzerland is as expected and in line with its top position on the World Economic Forum’s Global Competitiveness Report.
When most weight is assigned to the factors related to the Talent Environment category (adjust all the talent environment factors to the far right and all the others to the far left) the rank shows also a different order, ranking US, Switzerland and France as most attractive countries. All three offer an great attractiveness with their well known education institutes, quality of life and logistic infrastructure.
In case factors of the Growth Drivers category (country brand, market potential and globalisation) are weighed as most important Qatar and China are top ranked (adjust for this analysis all the attractiveness factors to the far right and all the others to the far left). Both countries show favourable demographics and strong annual economic growth rates.