The WEF report said that Taiwan remains stable in 13th position, with its competitiveness profile essentially unchanged from last year. Taiwan displays a consistent performance across the pillars of the global competitiveness index (GCI), although it enters the top 10 in only two of them.
Taiwan’s ranking is next to only Singapore, Japan and Hong Kong in Asia, but better than Korea’s 24th and China’s 26th, the same report showed.
Of the three major indicators forming the GCI, Taiwan ranks 15th in basic demand, up from last year’s 19th; 16th in efficiency enhancement, unchanged from last year’s ranking; and 7th in innovator factor, up from 10th.
Among the 142 economies, Taiwan and 34 advanced countries in America and Europe are regarded as innovation-driven economic entities with per capita gross national products exceeding US$17,000 per year.
Taiwan’s prowess in innovation is undeniable. Ranked 9th in the innovation pillar, Taiwan boasts the largest number of United States Patent and Trademark Office (USPTO)’s granted patents on a per capita basis, more than the United States. In addition, the quality and presence of business clusters in high-end manufacturing, along with its first-class RD, earns Taiwan the top spot on the related indicator.
The economy’s capacity for innovation is further supported by an excellent educational system, which is characterized at all levels by high enrollment rates and first-rate quality. Specifically, Taiwan ranks 10th in higher education and training.
The economy can also rely on a high level of technological readiness (24th) and well-developed infrastructure (16th), with the exception of air transport (51st), according to the WEF report.
Among the country’s relative weaknesses, its labor market is characterized by much rigidity (98th); the situation has been deteriorating over the past two years (it now ranks 33rd, down nine places in two years). Room for improvement also exists in public and private institutions (31st), although consistent advances have been achieved in this area since 2008.
The report also reveals findings of a survey about Taiwan’s business climates, showing that inconsistent government policies and poor government efficiency are the top two headaches for businessmen polled, and that commodity price inflation has emerged as the third headache facing them.
The Global Competitiveness Report 2011-2012, comes out amid multiple challenges to the global economy and a continuing shift in the balance of economic activity away from advanced economies and toward emerging markets. Policymakers are struggling to find ways to manage the present economic challenges while preparing their economies to perform well in an increasingly complex global landscape and the report offers a unique tool in addressing some key issues.
The report shows that Switzerland tops the overall rankings. Singapore overtakes Sweden for second position. Northern and Western European countries dominate the top 10 with Sweden (3rd), Finland (4th), Germany (6th), the Netherlands (7th), Denmark (8th) and the United Kingdom (10th). Japan remains the second-ranked Asian economy at 9th place, despite falling three places since last year.