Israeli flags 311.
(photo credit: Marc Israel Sellem)
Israel rose two positions to a record No. 22 in the World Economic Forum’s 2011
Global Competitiveness Report, which was released Wednesday.
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main strengths remain its world-class capacity for innovation (6th), which rests
on highly innovative businesses that benefit from the presence of the world’s
best research institutions, geared toward the needs of the business sector,” the
“The excellent innovation capacity, which is additionally
supported by the government’s public procurement policies, is reflected in the
country’s high number of patents (4th),” it said. “Its favorable financial
environment (10th), particularly the solid availability of venture capital
(2nd), has further contributed to making Israel an innovation powerhouse; these
elements have become stronger in the course of the past year.”
the report warned: “Challenges to maintaining and improving national
competitiveness relate to the need for continued upgrading of institutions
(33rd) and a renewed focus on raising the bar in terms of the quality of
education. If not addressed, poor educational outcomes, in particular in the
area of math and science (79th), could undermine the country’s innovation-
driven competitiveness strategy over the longer term. As in previous years, the
security situation remains fragile and imposes a high cost on business
“Room for improvement also remains with respect to the
macroeconomic environment (53rd), where increased budgetary discipline with a
view to reducing debt levels would help the country maintain stability and
support economic growth going into the future.”
Switzerland topped the
list of 139 countries, followed by Singapore, Sweden, Finland and the United
States, which dropped one place to No. 5. Qatar (14th) and Saudi Arabia (17th)
led the Middle Eastern nations, followed by Israel, the United Arab Emirates
(27th), Oman (32nd) and Kuwait (34th).
The World Economic Forum bases its
analysis on the Global Competitiveness Index, which defines competitiveness as
the set of institutions, policies and factors that determine the level of
productivity of a country.
That level of productivity, in turn, sets the
level of prosperity that can be earned by an economy.