The 2006 European Competitiveness Index, published on 24 November by academics from the UK's Sheffield University and the US' George Washington University, reveals that most regions within the ten new member states are "significantly less competitive than the European average".
Based on GDP, labour productivity and unemployment rates, as well as investment and employment levels in R&D activities, numbers of patent applications and transport infrastructure, the study compares 118 locations, revealing that only Prague (7th position), Bratislava (10th) and the Közép-Magyarország region of Hungary, which includes Budapest (47th), are above-average performers.
Brussels, for the first time, takes the top spot as Europe’s most competitive region, surpassing the greater Helsinki region of Uusimaa (now 2nd), largely thanks to the high levels of public-sector investment it receives via Commission activities. The wider Paris region of Ile de France ranks 3rd and Stockholm 4th.
The country making the biggest improvements since the last study in 2004 is Spain, with all regions moving up the rankings. In contrast, all of Germany's and the Netherlands' regions have registered a drop.
Dr Robert Huggins, who developed the index, said: "The report reveals a number of problems concerning Europe’s bid to improve its competitiveness. Those regions featured at the bottom of the rankings generally lack the economic and industrial infrastructure that is a feature of Europe’s most competitive regions. They also tend to be remotely situated...and are unable to connect themselves with the major European markets."
Finland, as a country, yet again comes top of the class in the national rankings, followed by Luxembourg, Switzerland, Norway and Denmark. The bottom three nations are Latvia, Lithuania and Estonia.
