Centre for International Competitiveness

      Home » Competitiveness Reports » European Competitiveness

European Competitiveness Index

The European Competitiveness Index measures, compares and examines the competitiveness of Europe’s regions and nations. Competitiveness is defined as the capability of an economy to maintain increasing standards of living for those who participate in it, by attracting and maintaining firms with stable or rising market shares in an activity. As such, the competitiveness of a region will depend on its ability to anticipate and successfully adapt to internal and external economic and social challenges, by providing new economic opportunities, including higher quality jobs.

The European Competitiveness Index Series can be download for Free.

Visit Downloads

The importance of the concept of competitiveness is now firmly embedded within economic policymaking in Europe, and indeed around the world. As such, measuring, understanding and analysing competitiveness at a number of geographic levels has become a vital factor in creating an informed dialogue that can contribute to a policy environment attuned to enhancing the economic performance of Europe’s nations and regions.

Since the first European Competitiveness Index report, the face of the EU has since changed dramatically, with the enlargement bringing ten new countries into the Union. With data now available for these new EU states, the European Competitiveness Index 2006-07 has been expanded to include all EU-25 nations and their respective NUTS-1 regions. This continued focus on regions, as well as nations, reflects the growing consensus that it is regions that are the primary spatial unit that compete to attract investment, and the level at which knowledge is circulated and transferred, resulting in agglomerations, or clusters, of industrial and service sector enterprises

Brussels tops the regional European Competitiveness Index 2006-07, moving up two places from 2004 and knocking the previous leader, Uusimaa (Greater Helsinki region), down into second position. In terms of economic performance, Brussels is clearly one of the wealthiest cities of Europe, with the highest GDP per capita of any region benchmarked by the European Competitiveness Index, and second only to Île de France in terms of earnings and labour productivity. The unparalleled economic well-being of the region is , in part, a result of the unique level of public sector investment, being the home of the European Commission. However, our findings show that the region is also a dynamic, knowledge-intensive hub, both for Belgium and for Europe.

The Regional European Competitiveness Index 2006-07 (Top Ten Regions)

Rank Region 2005 Index Score 2004 Rank Change in Rank
1 Brussels, Belgium 193.5 3 2
2 Uusimaa, Finland 188.3 1 -1
3 Île de France, France 185.2 4 1
4 Stockholm, Sweden 177.8 2 -2
5 Etelä-Suomi, Finland 175.4 28 28
6 Luxembourg 165.9 6 0
7 Prague, Czech Republic 165.7 - -
8 Hamburg, Germany 163.5 7 -1
9 London, UK 162.6 8 -1
10 Bratislavský kraj, Slovakia 159.6 - -

Finland tops the national European Competitiveness Index 2006-07, very closely followed by Luxembourg. Of the new EU member states, Slovenia is the best performer, and also the only new entrant to score higher than any of the old EU-15, outperforming both Greece and Portugal. The bottom of the index is filled by the Baltic states of Latvia, Lithuania and Estonia.

The variables included in the European Competitiveness Index (the datasheets that accompany the reports contain full data for the variables and factors covered by the reports) are:

Creativity
R&D Employment in the Business Sector per 1,000 inhabitants
R&D Employment in the Government Sector per 1,000 inhabitants
R&D Employment in the Higher Education Sector per 1,000 inhabitants
R&D Expenditure in the Business Sector per capita
R&D Expenditure in the Government Sector per capita
R&D Expenditure in the Higher Education Sector per capita
Number of Patent Applications per 1 million inhabitants
Employment in ICT Services per 1,000 inhabitants

Economic Performance
GDP per Capita
Labour Productivity
Unemployment Rate
Long-Term Unemployment Rate
Mean Gross Monthly Earnings
Activity Rate

Infrastructure and Accessibility
Motorway Length per km 2
Motorway Length per vehicle
Length of Railway per km 2
Air Freight Disembarked per 1,000 inhabitants
Air Passengers Disembarked per 1,000 inhabitants
Number of Vehicles per 1,000 inhabitants
Broadband Access Lines per 1,000 inhabitants (national data only)
Secure Servers per 100,000 inhabitants (national data only)

Knowledge Employment
Employment in Biotechnology and Chemicals per 1,000 inhabitants
Employment in IT and Computer Manufacturing per 1,000 inhabitants
Employment in ICT Services per 1,000 inhabitants
Employment in Research and Development per 1,000 inhabitants
Employment in Telecommunications per 1,000 inhabitants
Employment in Machinery and Equipment Manufacturing per 1,000 inhabitants
Employment in Instrumentation and Machinery per 1,000 inhabitants
Employment in Automotive and Mechanical Engineering per 1,000 inhabitants

Education
Number of Students in General and Pre-vocational Upper Secondary Education per employed person
Number of Students in Vocational Upper Secondary Education per employed person
Number of Students in Academic Tertiary Education per employed person
Number of Students in Vocational Tertiary Education per employed person
Tertiary Education Expenditure per Capita (national data only)
Secondary Education Expenditure per Capita (national data only)

  Content Copyright © 2017 Centre for International Competitiveness
Terms and Conditions | Privacy | Site Map | Cardiff Web Design