Finland moved up three places from last year to reach the fourth place in the World Economic Forum’s annual study of global competitiveness.
The World Economic Forum defines competitiveness as the set of institutions, policies and factors that determine the level of productivity of a country. The proud boast of Finland is its well-functioning and highly transparent public institutions, topping several indicators included in this category.
Finland also occupies a top position in higher education and training, the result of a strong focus on education over recent decades. This has provided the workforce with the skills needed to adapt rapidly to a changing environment and laid the groundwork for high levels of technological adoption and innovation. Not surprisingly then, Finland is also one of the innovation powerhouses in Europe, ranking 3rd, behind only Switzerland and Singapore. Finland’s macroeconomic environment remains also fairly healthy, despite a small increase in the government’s budget deficit.
The World Economic Forum competitiveness study has been carried for more than three decades, now ranking over 140 economies worldwide by evaluating 12 factors contributing to competitiveness. These include education and training, technological progress, macroeconomic stability, good governance, firm sophistication, and market efficiency, among others.