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2012-2013 Hong Kong Profile - WEF Global Competiveness Report

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  • 1. Insight Report Klaus Schwab, World Economic Forum The Global Competitiveness Report 2012–2013
  • 2. The Global Competitiveness Report 2012–2013 | 13 1.1: The Global Competitiveness Index 2012–2013 Table 3: The Global Competitiveness Index 2012–2013 rankings and 2011–2012 comparisons Rank among Score GCI 2011–2012 GCI 2011–2012 Country/Economy Rank/144 (1–7) sample rank Switzerland 1 5.72 1 1 Singapore 2 5.67 2 2 Finland 3 5.55 3 4 Sweden 4 5.53 4 3 Netherlands 5 5.50 5 7 Germany 6 5.48 6 6 United States 7 5.47 7 5 United Kingdom 8 5.45 8 10 Hong Kong SAR 9 5.41 9 11 Japan 10 5.40 10 9 Qatar 11 5.38 11 14 Denmark 12 5.29 12 8 Taiwan, China 13 5.28 13 13 Canada 14 5.27 14 12 Norway 15 5.27 15 16 Austria 16 5.22 16 19 Belgium 17 5.21 17 15 Saudi Arabia 18 5.19 18 17 Korea, Rep. 19 5.12 19 24 Australia 20 5.12 20 20 France 21 5.11 21 18 Luxembourg 22 5.09 22 23 New Zealand 23 5.09 23 25 United Arab Emirates 24 5.07 24 27 Malaysia 25 5.06 25 21 Israel 26 5.02 26 22 Ireland 27 4.91 27 29 Brunei Darussalam 28 4.87 28 28 China 29 4.83 29 26 Iceland 30 4.74 30 30 Puerto Rico 31 4.67 31 35 Oman 32 4.65 32 32 Chile 33 4.65 33 31 Estonia 34 4.64 34 33 Bahrain 35 4.63 35 37 Spain 36 4.60 36 36 Kuwait 37 4.56 37 34 Thailand 38 4.52 38 39 Czech Republic 39 4.51 39 38 Panama 40 4.49 40 49 Poland 41 4.46 41 41 Italy 42 4.46 42 43 Turkey 43 4.45 43 59 Barbados 44 4.42 44 42 Lithuania 45 4.41 45 44 Azerbaijan 46 4.41 46 55 Malta 47 4.41 47 51 Brazil 48 4.40 48 53 Portugal 49 4.40 49 45 Indonesia 50 4.40 50 46 Kazakhstan 51 4.38 51 72 South Africa 52 4.37 52 50 Mexico 53 4.36 53 58 Mauritius 54 4.35 54 54 Latvia 55 4.35 55 64 Slovenia 56 4.34 56 57 Costa Rica 57 4.34 57 61 Cyprus 58 4.32 58 47 India 59 4.32 59 56 Hungary 60 4.30 60 48 Peru 61 4.28 61 67 Bulgaria 62 4.27 62 74 Rwanda 63 4.24 63 70 Jordan 64 4.23 64 71 Philippines 65 4.23 65 75 Iran, Islamic Rep. 66 4.22 66 62 Russian Federation 67 4.20 67 66 Sri Lanka 68 4.19 68 52 Colombia 69 4.18 69 68 Morocco 70 4.15 70 73 Slovak Republic 71 4.14 71 69 Montenegro 72 4.14 72 60 Rank among Score GCI 2011–2012 GCI 2011–2012 Country/Economy Rank/144 (1–7) sample rank Ukraine 73 4.14 73 82 Uruguay 74 4.13 74 63 Vietnam 75 4.11 75 65 Seychelles 76 4.10 n/a n/a Georgia 77 4.07 76 88 Romania 78 4.07 77 77 Botswana 79 4.06 78 80 Macedonia, FYR 80 4.04 79 79 Croatia 81 4.04 80 76 Armenia 82 4.02 81 92 Guatemala 83 4.01 82 84 Trinidad and Tobago 84 4.01 83 81 Cambodia 85 4.01 84 97 Ecuador 86 3.94 85 101 Moldova 87 3.94 86 93 Bosnia and Herzegovina 88 3.93 87 100 Albania 89 3.91 88 78 Honduras 90 3.88 89 86 Lebanon 91 3.88 90 89 Namibia 92 3.88 91 83 Mongolia 93 3.87 92 96 Argentina 94 3.87 93 85 Serbia 95 3.87 94 95 Greece 96 3.86 95 90 Jamaica 97 3.84 96 107 Gambia, The 98 3.83 97 99 Gabon 99 3.82 n/a n/a Tajikistan 100 3.80 98 105 El Salvador 101 3.80 99 91 Zambia 102 3.80 100 113 Ghana 103 3.79 101 114 Bolivia 104 3.78 102 103 Dominican Republic 105 3.77 103 110 Kenya 106 3.75 104 102 Egypt 107 3.73 105 94 Nicaragua 108 3.73 106 115 Guyana 109 3.73 107 109 Algeria 110 3.72 108 87 Liberia 111 3.71 n/a n/a Cameroon 112 3.69 109 116 Libya 113 3.68 n/a n/a Suriname 114 3.68 110 112 Nigeria 115 3.67 111 127 Paraguay 116 3.67 112 122 Senegal 117 3.66 113 111 Bangladesh 118 3.65 114 108 Benin 119 3.61 115 104 Tanzania 120 3.60 116 120 Ethiopia 121 3.55 117 106 Cape Verde 122 3.55 118 119 Uganda 123 3.53 119 121 Pakistan 124 3.52 120 118 Nepal 125 3.49 121 125 Venezuela 126 3.46 122 124 Kyrgyz Republic 127 3.44 123 126 Mali 128 3.43 124 128 Malawi 129 3.38 125 117 Madagascar 130 3.38 126 130 Côte d’Ivoire 131 3.36 127 129 Zimbabwe 132 3.34 128 132 Burkina Faso 133 3.34 129 136 Mauritania 134 3.32 130 137 Swaziland 135 3.28 131 134 Timor-Leste 136 3.27 132 131 Lesotho 137 3.19 133 135 Mozambique 138 3.17 134 133 Chad 139 3.05 135 142 Yemen 140 2.97 136 138 Guinea 141 2.90 n/a n/a Haiti 142 2.90 137 141 Sierra Leone 143 2.82 n/a n/a Burundi 144 2.78 138 140 GCI 2012–2013 GCI 2012–2013 © 2012 World Economic Forum Hong Kong SAR 9 5.41 9 11 naChi 29 4.83 29 26
  • 3. 1.1: The Global Competitiveness Index 2012–2013 14 | The Global Competitiveness Report 2012–2013 Table 4: The Global Competitiveness Index 2012–2013 SUBINDEXES Innovation and OVERALL INDEX Basic requirements Efficiency enhancers sophistication factors Country/Economy Rank Score Rank Score Rank Score Rank Score Switzerland 1 5.72 2 6.22 5 5.48 1 5.79 Singapore 2 5.67 1 6.34 1 5.65 11 5.27 Finland 3 5.55 4 6.03 9 5.30 3 5.62 Sweden 4 5.53 6 6.01 8 5.32 5 5.56 Netherlands 5 5.50 10 5.92 7 5.35 6 5.47 Germany 6 5.48 11 5.86 10 5.27 4 5.57 United States 7 5.47 33 5.12 2 5.63 7 5.42 United Kingdom 8 5.45 24 5.51 4 5.50 9 5.32 Hong Kong SAR 9 5.41 3 6.14 3 5.54 22 4.73 Japan 10 5.40 29 5.30 11 5.27 2 5.67 Qatar 11 5.38 7 5.96 22 4.93 15 5.02 Denmark 12 5.29 16 5.68 15 5.15 12 5.24 Taiwan, China 13 5.28 17 5.67 12 5.24 14 5.08 Canada 14 5.27 14 5.71 6 5.41 21 4.74 Norway 15 5.27 9 5.95 16 5.15 16 5.00 Austria 16 5.22 20 5.63 19 5.01 10 5.30 Belgium 17 5.21 22 5.52 17 5.09 13 5.21 Saudi Arabia 18 5.19 13 5.74 26 4.84 29 4.47 Korea, Rep. 19 5.12 18 5.66 20 5.00 17 4.96 Australia 20 5.12 12 5.75 13 5.20 28 4.56 France 21 5.11 23 5.52 18 5.04 18 4.96 Luxembourg 22 5.09 8 5.96 24 4.87 19 4.89 New Zealand 23 5.09 19 5.65 14 5.16 27 4.60 United Arab Emirates 24 5.07 5 6.03 21 4.94 25 4.64 Malaysia 25 5.06 27 5.38 23 4.89 23 4.70 Israel 26 5.02 37 5.10 27 4.79 8 5.33 Ireland 27 4.91 35 5.11 25 4.85 20 4.87 Brunei Darussalam 28 4.87 21 5.56 68 4.05 62 3.64 China 29 4.83 31 5.25 30 4.64 34 4.05 Iceland 30 4.74 30 5.27 36 4.54 24 4.69 Puerto Rico 31 4.67 48 4.86 33 4.61 26 4.64 Oman 32 4.65 15 5.69 45 4.40 44 3.91 Chile 33 4.65 28 5.35 32 4.63 45 3.87 Estonia 34 4.64 26 5.47 31 4.63 33 4.06 Bahrain 35 4.63 25 5.47 35 4.58 53 3.74 Spain 36 4.60 36 5.11 29 4.67 31 4.14 Kuwait 37 4.56 32 5.21 75 3.98 86 3.36 Thailand 38 4.52 45 4.89 47 4.38 55 3.72 Czech Republic 39 4.51 44 4.89 34 4.59 32 4.13 Panama 40 4.49 50 4.83 50 4.36 48 3.83 Poland 41 4.46 61 4.66 28 4.69 61 3.66 Italy 42 4.46 51 4.81 41 4.44 30 4.24 Turkey 43 4.45 57 4.75 42 4.42 50 3.79 Barbados 44 4.42 38 5.09 49 4.37 38 3.97 Lithuania 45 4.41 49 4.84 46 4.38 47 3.83 Azerbaijan 46 4.41 56 4.76 67 4.05 57 3.68 Malta 47 4.41 34 5.12 40 4.46 46 3.85 Brazil 48 4.40 73 4.49 38 4.52 39 3.97 Portugal 49 4.40 40 4.96 44 4.40 37 4.01 Indonesia 50 4.40 58 4.74 58 4.20 40 3.96 Kazakhstan 51 4.38 47 4.86 56 4.24 104 3.25 South Africa 52 4.37 84 4.28 37 4.53 42 3.94 Mexico 53 4.36 63 4.64 53 4.31 49 3.79 Mauritius 54 4.35 52 4.80 62 4.14 63 3.63 Latvia 55 4.35 54 4.79 48 4.37 68 3.57 Slovenia 56 4.34 39 5.05 55 4.25 36 4.02 Costa Rica 57 4.34 67 4.61 60 4.18 35 4.04 Cyprus 58 4.32 42 4.94 43 4.41 51 3.77 India 59 4.32 85 4.26 39 4.48 43 3.94 Hungary 60 4.30 55 4.78 52 4.32 58 3.68 Peru 61 4.28 69 4.57 57 4.23 94 3.31 Bulgaria 62 4.27 65 4.63 59 4.18 97 3.30 Rwanda 63 4.24 70 4.56 94 3.77 60 3.66 Jordan 64 4.23 66 4.61 70 4.03 52 3.74 Philippines 65 4.23 80 4.35 61 4.17 64 3.60 Iran, Islamic Rep. 66 4.22 59 4.69 90 3.81 77 3.46 Russian Federation 67 4.20 53 4.79 54 4.26 108 3.16 Sri Lanka 68 4.19 72 4.50 77 3.96 41 3.96 Colombia 69 4.18 77 4.40 63 4.13 66 3.58 Morocco 70 4.15 68 4.60 79 3.94 84 3.38 Slovak Republic 71 4.14 62 4.64 51 4.33 74 3.50 Montenegro 72 4.14 74 4.49 74 3.99 69 3.57 (Cont’d.) © 2012 World Economic Forum Hong Kongg SAR 9 5.41 3 6.14 3 5.54 22 4.73
  • 4. Percent of responses GDP (PPP) per capita (int’l $), 1990–2011 Institutions Infrastructure Macroeconomic environment Health and primary education Higher education and training Goods market efficiency Labor market efficiency Financial market development Technological readiness Market size Business sophistication Innovation 1 2 3 4 5 6 7 Rank Score (out of 144) (1–7) Note: From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 2.1: Country/Economy Profiles 138 | The Global Competitiveness Report 2012–2013 Key indicators, 2011 Population (millions)................................... 1,367.0 GDP (US$ billions) ..................................... 7,298.1 GDP per capita (US$)................................... 5,414 GDP (PPP) as share (%) of world total.......... 14.32 The Global Competitiveness Index GCI 2012–2013......................................................29..... 4.8 GCI 2011–2012 (out of 142)..................................... 26......4.9 GCI 2010–2011 (out of 139)..................................... 27......4.8 Basic requirements (40.0%).......................................31 ......5.3 Institutions................................................................ 50......4.2 Infrastructure ............................................................ 48......4.5 Macroeconomic environment ................................... 11......6.2 Health and primary education................................... 35......6.1 Efficiency enhancers (50.0%).....................................30 ......4.6 Higher education and training................................... 62......4.3 Goods market efficiency .......................................... 59......4.3 Labor market efficiency ............................................ 41......4.6 Financial market development .................................. 54......4.3 Technological readiness............................................ 88......3.5 Market size................................................................. 2......6.8 Innovation and sophistication factors (10.0%)...........34 ......4.0 Business sophistication ........................................... 45......4.3 Innovation................................................................. 33......3.8 The most problematic factors for doing business Access to financing ...........................................................13.1 Inflation..............................................................................10.2 Policy instability ...................................................................9.9 Inefficient government bureaucracy .....................................9.7 Corruption ...........................................................................9.2 Tax rates..............................................................................8.1 Insufficient capacity to innovate...........................................7.6 Inadequate supply of infrastructure......................................6.4 Tax regulations ....................................................................5.7 Inadequately educated workforce........................................5.2 Foreign currency regulations................................................4.2 Poor work ethic in national labor force ................................4.0 Restrictive labor regulations.................................................2.2 Government instability/coups ..............................................1.9 Poor public health ...............................................................1.5 Crime and theft ...................................................................1.0 China Factor driven Efficiency driven Innovation driven 1 Transition 1–2 2 Transition 2–3 3 Stage of development China Efficiency-driven economies 0 5 10 15 20 25 30 0 2,000 4,000 6,000 8,000 1991 1993 19971995 1999 2001 2003 20072005 2009 2011 China Developing Asia © 2012 World Economic Forum Market size Innovation Business sophistication
  • 5. Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 83. The Global Competitiveness Index in detail The Global Competitiveness Report 2012–2013 | 139 2.1: Country/Economy Profiles INDICATOR VALUE RANK/144 6th pillar: Goods market efficiency 6.01 Intensity of local competition.................................. 5.3............37 6.02 Extent of market dominance .................................. 4.6............23 6.03 Effectiveness of anti-monopoly policy..................... 4.2............54 6.04 Extent and effect of taxation................................... 3.9............41 6.05 Total tax rate, % profits*....................................... 63.5..........125 6.06 No. procedures to start a business*........................ 14..........134 6.07 No. days to start a business* .................................. 38..........116 6.08 Agricultural policy costs.......................................... 4.7............13 6.09 Prevalence of trade barriers ................................... 4.2............79 6.10 Trade tariffs, % duty*............................................ 11.5..........122 6.11 Prevalence of foreign ownership............................. 4.3............99 6.12 Business impact of rules on FDI............................. 5.0............41 6.13 Burden of customs procedures.............................. 4.2............65 6.14 Imports as a percentage of GDP* ........................ 27.1..........126 6.15 Degree of customer orientation.............................. 4.5............90 6.16 Buyer sophistication............................................... 4.6............11 7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations ................. 4.4............57 7.02 Flexibility of wage determination............................. 5.0............77 7.03 Hiring and firing practices....................................... 4.3............42 7.04 Redundancy costs, weeks of salary*....................... 27..........117 7.05 Pay and productivity............................................... 4.7............16 7.06 Reliance on professional management................... 4.5............48 7.07 Brain drain ............................................................. 4.1............39 7.08 Women in labor force, ratio to men*..................... 0.88............34 8th pillar: Financial market development 8.01 Availability of financial services ............................... 4.6............68 8.02 Affordability of financial services ............................. 4.6............46 8.03 Financing through local equity market.................... 3.9............46 8.04 Ease of access to loans ......................................... 3.1............50 8.05 Venture capital availability....................................... 3.5............22 8.06 Soundness of banks .............................................. 5.1............71 8.07 Regulation of securities exchanges ........................ 4.3............58 8.08 Legal rights index, 0–10 (best)* ................................. 6............65 9th pillar: Technological readiness 9.01 Availability of latest technologies ............................ 4.4..........107 9.02 Firm-level technology absorption............................ 4.7............71 9.03 FDI and technology transfer ................................... 4.6............77 9.04 Individuals using Internet, %* ............................... 38.3............73 9.05 Broadband Internet subscriptions/100 pop.*........ 11.6............49 9.06 Int’l Internet bandwidth, kb/s per user* .................. 2.7..........119 9.07 Mobile broadband subscriptions/100 pop.*............ 9.5............69 10th pillar: Market size 10.01 Domestic market size index, 1–7 (best)*................. 6.8..............2 10.02 Foreign market size index, 1–7 (best)*.................... 7.0..............1 11th pillar: Business sophistication 11.01 Local supplier quantity ........................................... 5.2............28 11.02 Local supplier quality.............................................. 4.5............66 11.03 State of cluster development.................................. 4.6............23 11.04 Nature of competitive advantage............................ 3.6............56 11.05 Value chain breadth................................................ 3.8............49 11.06 Control of international distribution......................... 4.3............41 11.07 Production process sophistication.......................... 3.9............57 11.08 Extent of marketing................................................ 4.4............52 11.09 Willingness to delegate authority............................ 3.8............54 12th pillar: Innovation 12.01 Capacity for innovation........................................... 4.1............23 12.02 Quality of scientific research institutions ................. 4.2............44 12.03 Company spending on R&D................................... 4.1............24 12.04 University-industry collaboration in R&D ................. 4.4............35 12.05 Gov’t procurement of advanced tech products...... 4.4............16 12.06 Availability of scientists and engineers.................... 4.4............46 12.07 PCT patents, applications/million pop.*.................. 6.5............38 INDICATOR VALUE RANK/144 1st pillar: Institutions 1.01 Property rights ....................................................... 4.9............47 1.02 Intellectual property protection ............................... 3.9............51 1.03 Diversion of public funds........................................ 3.7............51 1.04 Public trust in politicians......................................... 4.1............26 1.05 Irregular payments and bribes................................ 4.0............67 1.06 Judicial independence............................................ 3.9............66 1.07 Favoritism in decisions of government officials ....... 3.8............34 1.08 Wastefulness of government spending................... 3.7............39 1.09 Burden of government regulation ........................... 4.2............23 1.10 Efficiency of legal framework in settling disputes.... 4.2............44 1.11 Efficiency of legal framework in challenging regs. ... 3.9............53 1.12 Transparency of government policymaking............. 4.5............51 1.13 Gov’t services for improved business performance 4.3............32 1.14 Business costs of terrorism.................................... 5.1..........102 1.15 Business costs of crime and violence..................... 4.8............70 1.16 Organized crime..................................................... 4.7............98 1.17 Reliability of police services.................................... 4.5............59 1.18 Ethical behavior of firms ......................................... 4.0............58 1.19 Strength of auditing and reporting standards ......... 4.5............72 1.20 Efficacy of corporate boards .................................. 4.3............91 1.21 Protection of minority shareholders’ interests ......... 4.2............68 1.22 Strength of investor protection, 0–10 (best)* .......... 5.0............80 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure ............................... 4.3............69 2.02 Quality of roads...................................................... 4.4............54 2.03 Quality of railroad infrastructure.............................. 4.6............22 2.04 Quality of port infrastructure................................... 4.4............59 2.05 Quality of air transport infrastructure....................... 4.5............70 2.06 Available airline seat kms/week, millions* ...... 11,685.5..............2 2.07 Quality of electricity supply..................................... 5.2............59 2.08 Mobile telephone subscriptions/100 pop.* ........... 73.2..........114 2.09 Fixed telephone lines/100 pop.*........................... 21.2............58 3rd pillar: Macroeconomic environment 3.01 Government budget balance, % GDP*..................-1.2............41 3.02 Gross national savings, % GDP* .......................... 51.0..............5 3.03 Inflation, annual % change*.................................... 5.4............82 3.04 General government debt, % GDP* ..................... 25.8............35 3.05 Country credit rating, 0–100 (best)*...................... 79.6............22 4th pillar: Health and primary education 4.01 Business impact of malaria .................................... 5.6............89 4.02 Malaria cases/100,000 pop.* ................................. 2.0............80 4.03 Business impact of tuberculosis............................. 5.1............84 4.04 Tuberculosis cases/100,000 pop.* ....................... 78.0............84 4.05 Business impact of HIV/AIDS................................. 5.3............70 4.06 HIV prevalence, % adult pop.* ............................... 0.1............12 4.07 Infant mortality, deaths/1,000 live births*.............. 15.8............71 4.08 Life expectancy, years*......................................... 73.3............75 4.09 Quality of primary education................................... 4.5............42 4.10 Primary education enrollment, net %* .................. 99.8..............4 5th pillar: Higher education and training 5.01 Secondary education enrollment, gross %*.......... 81.2............90 5.02 Tertiary education enrollment, gross %*................ 25.9............79 5.03 Quality of the educational system........................... 3.9............57 5.04 Quality of math and science education .................. 4.6............33 5.05 Quality of management schools ............................. 4.2............68 5.06 Internet access in schools...................................... 5.4............31 5.07 Availability of research and training services ........... 4.4............55 5.08 Extent of staff training ............................................ 4.2............45 China © 2012 World Economic Forum
  • 6. Rank Score (out of 144) (1–7) GDP (PPP) per capita (int’l $), 1990–2011 Institutions Infrastructure Macroeconomic environment Health and primary education Higher education and training Goods market efficiency Labor market efficiency Financial market development Technological readiness Market size Business sophistication Innovation 1 2 3 4 5 6 7 Percent of responses Note: From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 2.1: Country/Economy Profiles 192 | The Global Competitiveness Report 2012–2013 Key indicators, 2011 Population (millions).......................................... 7.4 GDP (US$ billions) ........................................ 243.3 GDP per capita (US$)................................. 34,049 GDP (PPP) as share (%) of world total............ 0.45 The Global Competitiveness Index GCI 2012–2013........................................................9..... 5.4 GCI 2011–2012 (out of 142)..................................... 11......5.4 GCI 2010–2011 (out of 139)..................................... 11......5.3 Basic requirements (20.0%).........................................3 ......6.1 Institutions................................................................ 10......5.5 Infrastructure .............................................................. 1......6.7 Macroeconomic environment ................................... 15......6.1 Health and primary education................................... 26......6.2 Efficiency enhancers (50.0%).......................................3 ......5.5 Higher education and training................................... 22......5.3 Goods market efficiency ............................................ 2......5.4 Labor market efficiency .............................................. 3......5.6 Financial market development .................................... 1......5.9 Technological readiness.............................................. 4......6.2 Market size............................................................... 26......4.8 Innovation and sophistication factors (30.0%)...........22 ......4.7 Business sophistication ........................................... 17......5.1 Innovation................................................................. 26......4.4 The most problematic factors for doing business Inflation..............................................................................20.6 Insufficient capacity to innovate.........................................16.9 Inefficient government bureaucracy ...................................15.2 Inadequately educated workforce......................................10.9 Access to financing .............................................................6.9 Restrictive labor regulations.................................................6.7 Inadequate supply of infrastructure......................................5.8 Policy instability ...................................................................4.8 Poor work ethic in national labor force ................................3.0 Poor public health ...............................................................2.2 Tax rates..............................................................................1.9 Tax regulations ....................................................................1.8 Foreign currency regulations................................................1.6 Government instability/coups ..............................................1.2 Corruption ...........................................................................0.5 Crime and theft ...................................................................0.0 Hong Kong SAR Stage of development Factor driven Efficiency driven Innovation driven 1 Transition 1–2 2 Transition 2–3 3 Hong Kong SAR Innovation-driven economies 0 5 10 15 20 25 30 10,000 20,000 30,000 40,000 50,000 1991 1993 19971995 1999 2001 2003 20072005 2009 2011 Hong Kong SAR Advanced economies © 2012 World Economic Forum Innovation Market size Business nnsophistication
  • 7. Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 83. The Global Competitiveness Index in detail The Global Competitiveness Report 2012–2013 | 193 2.1: Country/Economy Profiles INDICATOR VALUE RANK/144 6th pillar: Goods market efficiency 6.01 Intensity of local competition.................................. 5.8..............9 6.02 Extent of market dominance .................................. 3.9............56 6.03 Effectiveness of anti-monopoly policy..................... 4.2............55 6.04 Extent and effect of taxation................................... 5.6..............4 6.05 Total tax rate, % profits*....................................... 23.0............18 6.06 No. procedures to start a business*.......................... 3..............8 6.07 No. days to start a business* .................................... 3..............4 6.08 Agricultural policy costs.......................................... 4.7............15 6.09 Prevalence of trade barriers ................................... 5.9..............4 6.10 Trade tariffs, % duty*.............................................. 0.0..............1 6.11 Prevalence of foreign ownership............................. 6.0..............5 6.12 Business impact of rules on FDI............................. 6.0..............4 6.13 Burden of customs procedures.............................. 6.1..............3 6.14 Imports as a percentage of GDP* ...................... 233.1..............1 6.15 Degree of customer orientation.............................. 5.4............14 6.16 Buyer sophistication............................................... 4.7..............7 7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations ................. 5.4..............9 7.02 Flexibility of wage determination............................. 6.0..............6 7.03 Hiring and firing practices....................................... 5.8..............1 7.04 Redundancy costs, weeks of salary*......................... 6............16 7.05 Pay and productivity............................................... 5.4..............1 7.06 Reliance on professional management................... 5.0............32 7.07 Brain drain ............................................................. 5.4..............8 7.08 Women in labor force, ratio to men*..................... 0.76............82 8th pillar: Financial market development 8.01 Availability of financial services ............................... 6.2..............7 8.02 Affordability of financial services ............................. 6.0..............1 8.03 Financing through local equity market.................... 5.7..............1 8.04 Ease of access to loans ......................................... 4.4..............7 8.05 Venture capital availability....................................... 4.5..............2 8.06 Soundness of banks .............................................. 6.5..............7 8.07 Regulation of securities exchanges ........................ 5.7..............9 8.08 Legal rights index, 0–10 (best)* ............................... 10..............1 9th pillar: Technological readiness 9.01 Availability of latest technologies ............................ 6.5..............8 9.02 Firm-level technology absorption............................ 6.0..............7 9.03 FDI and technology transfer ................................... 5.5............10 9.04 Individuals using Internet, %* ............................... 74.5............25 9.05 Broadband Internet subscriptions/100 pop.*........ 42.6..............1 9.06 Int’l Internet bandwidth, kb/s per user* .............. 964.6..............1 9.07 Mobile broadband subscriptions/100 pop.*.......... 51.8............14 10th pillar: Market size 10.01 Domestic market size index, 1–7 (best)*................. 4.4............36 10.02 Foreign market size index, 1–7 (best)*.................... 6.2..............6 11th pillar: Business sophistication 11.01 Local supplier quantity ........................................... 5.6............11 11.02 Local supplier quality.............................................. 5.4............20 11.03 State of cluster development.................................. 5.1............11 11.04 Nature of competitive advantage............................ 5.1............20 11.05 Value chain breadth................................................ 5.0............17 11.06 Control of international distribution......................... 5.0............13 11.07 Production process sophistication.......................... 4.7............31 11.08 Extent of marketing................................................ 5.4............13 11.09 Willingness to delegate authority............................ 4.6............23 12th pillar: Innovation 12.01 Capacity for innovation........................................... 3.6............37 12.02 Quality of scientific research institutions ................. 4.7............31 12.03 Company spending on R&D................................... 3.8............29 12.04 University-industry collaboration in R&D ................. 4.8............24 12.05 Gov’t procurement of advanced tech products...... 4.0............31 12.06 Availability of scientists and engineers.................... 4.6............36 12.07 PCT patents, applications/million pop.*.................. n/a...........n/a INDICATOR VALUE RANK/144 1st pillar: Institutions 1.01 Property rights ....................................................... 6.1..............7 1.02 Intellectual property protection ............................... 5.6............11 1.03 Diversion of public funds........................................ 5.7............12 1.04 Public trust in politicians......................................... 4.1............24 1.05 Irregular payments and bribes................................ 6.1............15 1.06 Judicial independence............................................ 6.0............12 1.07 Favoritism in decisions of government officials ....... 3.9............33 1.08 Wastefulness of government spending................... 4.5............17 1.09 Burden of government regulation ........................... 5.0..............4 1.10 Efficiency of legal framework in settling disputes.... 5.6..............6 1.11 Efficiency of legal framework in challenging regs. ... 5.4..............7 1.12 Transparency of government policymaking............. 5.9..............4 1.13 Gov’t services for improved business performance 4.7............10 1.14 Business costs of terrorism.................................... 5.9............52 1.15 Business costs of crime and violence..................... 6.0............10 1.16 Organized crime..................................................... 6.1............29 1.17 Reliability of police services.................................... 6.2............10 1.18 Ethical behavior of firms ......................................... 5.7............17 1.19 Strength of auditing and reporting standards ......... 6.0............10 1.20 Efficacy of corporate boards .................................. 5.0............28 1.21 Protection of minority shareholders’ interests ......... 5.3............13 1.22 Strength of investor protection, 0–10 (best)* .......... 9.0..............3 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure ............................... 6.5..............4 2.02 Quality of roads...................................................... 6.3..............8 2.03 Quality of railroad infrastructure.............................. 6.4..............3 2.04 Quality of port infrastructure................................... 6.5..............3 2.05 Quality of air transport infrastructure....................... 6.7..............2 2.06 Available airline seat kms/week, millions* ........ 2,396.3............14 2.07 Quality of electricity supply..................................... 6.8..............3 2.08 Mobile telephone subscriptions/100 pop.* ......... 209.6..............1 2.09 Fixed telephone lines/100 pop.*........................... 61.1..............3 3rd pillar: Macroeconomic environment 3.01 Government budget balance, % GDP*................... 3.7............14 3.02 Gross national savings, % GDP* .......................... 27.0............34 3.03 Inflation, annual % change*.................................... 5.3............80 3.04 General government debt, % GDP* ..................... 33.9............52 3.05 Country credit rating, 0–100 (best)*...................... 85.6............14 4th pillar: Health and primary education 4.01 Business impact of malaria .............................. n/appl...............1 4.02 Malaria cases/100,000 pop.* ................................(NE)..............1 4.03 Business impact of tuberculosis............................. 5.6............61 4.04 Tuberculosis cases/100,000 pop.* ....................... 80.0............85 4.05 Business impact of HIV/AIDS................................. 5.5............64 4.06 HIV prevalence, % adult pop.* ............................... 0.0..............1 4.07 Infant mortality, deaths/1,000 live births*................ 1.3..............1 4.08 Life expectancy, years*......................................... 82.9..............2 4.09 Quality of primary education................................... 4.8............29 4.10 Primary education enrollment, net %* .................. 93.8............68 5th pillar: Higher education and training 5.01 Secondary education enrollment, gross %*.......... 83.0............85 5.02 Tertiary education enrollment, gross %*................ 59.7............37 5.03 Quality of the educational system........................... 4.8............23 5.04 Quality of math and science education .................. 5.4............11 5.05 Quality of management schools ............................. 5.3............17 5.06 Internet access in schools...................................... 6.0............16 5.07 Availability of research and training services ........... 5.5............10 5.08 Extent of staff training ............................................ 4.6............24 Hong Kong SAR © 2012 World Economic Forum