Weak business skills push NZ down global rankings

Weak business skills push NZ down global economic rankings

Sept. 9 (BusinessDesk) – New Zealand has slipped three places from last year to 23rd in the World Economic Forum’s Global Competitiveness Report, with this country’s business development being particularly weak compared to the other 138 nations in the survey.

Innovation and business sophistication factors are recognised as being the most important factors for innovation-driven economies said the New Zealand Institute director, Rick Boven.

“Despite much recent attention and some investment of effort, New Zealand’s performance remains poor among the peer group of 32 innovation-driven countries, ranking 28th overall and having fallen one rank since last year,” he said.

The country performs well in the quality of scientific research institutions, university collaboration with industry in R&D, willingness to delegate authority, and the quality of local suppliers.

However, New Zealand is ranked below 50th for the value chain breadth of exporting companies, state of cluster development, availability of scientists and engineers, the competitive advantage in international markets of more unique products and processes, government procurement of advanced technical products and the quantity of local suppliers.

The nation’s market efficiencies in goods, financial and labour markets, as well as higher education and training rank in the top 13 countries. But technological readiness is relatively weak, and the country only ranks 59th for the extent to which foreign direct investment brings new technology into New Zealand.

“New Zealand’s small size and scale of trade and exports remains a significant challenge,” said Boven. “The survey highlights several government policy opportunities that would positively influence competitiveness. These include increasing the national savings rate, encouraging cluster formation and development, using government procurement to develop advanced technical products, assisting to attract, retain and develop scientists and engineers, and continuing to invest in infrastructure that lifts productivity.”

Switzerland was once again ranked the world’s most competitive nation by the Basel-based think tank, with much of its scientific research translated into marketable products and services. Sweden moved into 2nd, and Singapore retained 3rd place.

The United States fell from 2nd to 4th, much of the shift blamed on a lack of macroeconomic stability. Australia ranked 16th, compared with 15th a year earlier.

The Global Competitiveness index is made up of three sub-indices; basic factors, efficiency factors and most important for advanced economies, business sophistication and innovation factors.

(BusinessDesk) 18:03:35

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