Business leaders need to inject urgency into the debate about how the UK creates the next generation of knowledge-based wealth, urges a Deloitte report on how globalisation will drive future UK competitiveness.

The report, Trading Places, analyses the implications of the Deloitte Competitiveness Index (DCI), which was released late last year and ranked the UK sixth out of 25 countries for its capacity to support wealth creation.

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The DCI takes the areas that are acknowledged company-level performance drivers as well as indicators of national competitiveness – macroeconomic stability, enterprise, innovation, business investment, competition (or openness) and human capital – to determine the overall competitiveness of a nation. These are also the areas covered by the UK government’s own competitiveness indicators and are similar to the Lisbon Agenda targets.

The US scores high as a location for business competitiveness overall and through each of the competitiveness drivers. It is the only G7 country not predicted to slip down the rankings in future. In line with other international rankings, the Nordic countries also do well: Sweden, Finland and Denmark come second, third and fourth, respectively. In all these cases, productivity growth is strongly fuelled by the DCI’s four sub-indices.

Germany performs well in relation to other European and G7 countries because innovation and skills are the main drivers of wealth creation. Interestingly, Germany ranks highly for its stable economy. Despite sluggish performance in growth and employment, the economy has continued to maintain strong export performance.

 

 

Company policy on reviewing location of corporate headquarters (%)

Reasons for staying in London

 

 

 

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