Professor of Strategy
European Competitiveness; Europe;
Report | June 2013
Business leaders are challenged by a difficult European business environment that puts competitive performance and higher wages at risk—three-quarters of our alumni who responded to the 2013 INSEAD Survey expect European competitiveness to decline in the next three years.Only a fifth thought the European business environment was better than in other advanced economies. And although nearly 60% thought that Europe was keeping pace with other advanced countries, 55% believed that Europe was losing competitiveness relative to emerging economies.According to the Survey, Europe underperforms the U.S. in three important areas: labor market flexibility, quality of capital markets, and context for entrepreneurship. However, Europe does better in other areas such as infrastructure and primary and secondary education. Substantial differences in competitiveness exist among countries in Europe, and multiple paths to competitiveness are visible within Europe – some countries emphasize more liberalized market policies while others leverage government-led interventions in infrastructures, services and institutions.