Top > Business > 2007 > January > 2007-01-02

A Look at America`s place in global competition

How is the global economy changing, and where is America`s place in it? This is the question researched by the newly released Competitiveness Index, a report co-authored by Professor Michael Porter of the Harvard Business Scholl. The report analyses America`s place in the global economy and shows necessary measure to ensure the predominance of the world`s biggest economy in the future.

Defining the future of international trade as "hypercompetitive", "fast-paced" and based on "insight, imagination and ingenuity", the report researches whether the US will be able to adapt to the new market place despite a drop in math`s and science education and an ever-growing trade deficit, and arrives at the conclusion that the US economy is well prepared with it`s emphasis on entrepreneurship, and it`s easy access to capital and education. It also lauded the low entry barriers to newcomers in most markets.

Nevertheless, the paper urged policy makers not to rest on their laurels: Politicians should remain focused on providing capital to undersupplied regions, and keep pushing the educational agenda, as economic success will more and more rely on one`s ability to think creatively and understand complex connections. It also stressed the importance of finding alternative energy sources and becoming independent on foreign suppliers. Continued funding for scientific and research networks were vital, and the Competitiveness report emphasized further that Innovation was the key to economic growth in the future.