| | According to Trading Places, a Deloitte report published last month, the UK is ranked sixth amongst 25 world economies as the most competitive place in the world to do business, but this position is projected to slide to 12th if Government and business don’t take action now.
The Deloitte Competitiveness Index (DCI) is a new ranking based on key drivers of wealth creation – innovation, enterprise, investment and macroeconomic data. The report includes a survey | |
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| | of 300 UK business leaders who provide their perspective on the UK’s business environment today as well as predictions for the future.
Currently, the index ranks the UK among the top five countries when measured on macroeconomic stability and enterprise, however on skills, innovation and tax/regulation, the UK is significantly lower in the rankings. The index also provides future predictions assuming a continuation of trends and this is where the UK faces | |
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| | challenges, potentially dropping out of the top 10 by 2010.
Deloitte partner David Owen said: “The UK is at a critical point in its evolution as a centre for global business and its challenge is to turn accelerating globalisation into competitive advantage. Business leaders will need to ensure that the opportunities of a global market are taken, whether it is through reshaping business processes or building capabilities to evaluate constantly their network | |
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| | operations globally.
“For its part Government must concentrate on further policy reforms to ensure they remain in line with the world’s best practices.”
Further report analysis shows that the US is at the top of the league table with a strong performance across all sectors. It invests 3.2% of its GDP in R&D, giving it a particular strength in this area. Nordic countries Sweden, Finland and Denmark followed closely with strength in innovation | |
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| | and investment, while Germany’s ranking at fifth was due to its strong innovation base, enterprise and investment environment.
In emerging countries, South Korea is the front runner: it is ranked at 13, followed by India at 22 and China at 24. These countries are all expected to climb the ladder creating a tougher trading environment for continental Europe.
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