Iceland placed 7th in the World Economic’s Forum (WEF) Global Competitiveness Report 2005-2006, up from 10th place in 2004.
The WEF ranks 117 countries on a range of criteria intended to “capture the determinants of productivity and growth”.
According to WEF the criteria is drawn from statistical sources and a survey of nearly 11,000 business leaders. The criteria for the Growth Competitiveness Index is composed of economic indicators (25% weighting), technological competence and innovation (50% weighting) and the quality of public institutions.(25% weighting).
Iceland placed 9th in technological competence, 11th in the macroeconomic environment index and third in the quality of public institutions.
According to Technological Institute of Iceland innovation is the main factor behind Iceland moving up on the WEF Competitiveness Index.
The most important factor in the technology index is innovation. Innovation is seen in increased filings of Icelandic companies for patents in the US, and an increased number of students seeking university education.
In 1997 Iceland placed 38th on the Growth Competitiveness Index.
“The Nordic countries are characterized by excellent macroeconomic management overall – they are all running budget surpluses – they have extremely low levels of corruption, with their firms operating in a legal environment in which there is widespread respect for contracts and the rule of law, and their private sectors are on the forefront of technological innovation. These countries prove the point that enhanced competitiveness and boosting the capacity of economies to operate effectively in the global economy is a multifaceted challenge requiring concerted actions on a number of fronts,” said Augusto Lopez-Claros, Chief Economist and Director of the World Economic Forum’s Global Competitiveness Programme.
Global Competitiveness Country Rankings 2005-2006
16. New Zealand