09.06.12, 07:34–Israel has dropped to the 26th place in the Global Competitiveness Index published by the World Economic Forum, after ranking 22nd last year, reversing the upside trend of recent years.
According to the WEC, the most problematic factor for people doing business in Israel is inefficient government bureaucracy, followed by access to financing, tax rates and restrictive labor regulations.
The country’s main strength remains its capacity for innovation (third place), which is based on innovative businesses enjoying the presence of the world’s best research institutions, meeting the needs of the business sector.
Israel’s excellent capacity for innovation, which is supported by the government’s public procurement policy, is expressed in the high number of patents per capita (fourth place).
Its favorable financial environment, particularly the solid availability of venture capital (third place), has further contributed to making Israel an innovation powerhouse.
Challenges to maintaining and improving national competitiveness relate to the need for continued upgrading of institutions (34th place) and a renewed focus on raising the bar in terms of the quality of education.
If not addressed, poor educational outcomes, in particular in the area of math and science (89th place), could undermine the country’s innovation-driven competitiveness strategy over the longer term…Read More>>