Israel Competitiveness Snapshot Files/20121206 - Israel Competitiveness... Competitiveness. 20121206—Israel

  • View
    0

  • Download
    0

Embed Size (px)

Text of Israel Competitiveness Snapshot Files/20121206 - Israel Competitiveness... Competitiveness....

  • This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “Building the Microeconomic Foundations of Competitiveness,” in The Global Competitiveness Report (World Economic Forum), “Clusters and the New Competitive Agenda for Companies and Governments” in On Competition (Harvard Business School Press, 2008), and ongoing research on clusters and competitiveness. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of Michael E. Porter. Further information on Professor Porter’s work and the Institute for Strategy and Competitiveness is available at www.isc.hbs.edu

    Israel Competitiveness Snapshot

    Professor Michael E. Porter Harvard Business School

    December 6, 2012

  • 20121206—Israel Competitiveness Snapshot—FINAL Copyright 2012 © Professor Michael E. Porter2

    Note: Luxembourg Excluded Source: EIU (2012), authors calculations

    Prosperity Performance OECD Countries

    Australia Austria

    Belgium Canada

    Chile

    Czech Republic

    Denmark

    Estonia

    FinlandFrance

    Germany

    Greece

    Hungary

    Iceland

    Ireland

    IsraelItaly

    Japan

    Mexico

    Netherlands

    New Zealand

    Norway

    Poland

    Portugal Slovakia

    Slovenia South Korea

    Spain

    Sweden

    Switzerland

    Turkey

    United Kingdom

    United States

    $10,000

    $20,000

    $30,000

    $40,000

    $50,000

    $60,000

    1.5% 2.5% 3.5% 4.5% 5.5% 6.5% 7.5%

    PPP-Adjusted GDP per Capita, 2011 ($USD)

    Growth in Real GDP per Capita (PPP-adjusted), CAGR, 2001-2011

    OECD Average: 4.06%

    OECD Average: $33,432

  • 20121206—Israel Competitiveness Snapshot—FINAL Copyright 2012 © Professor Michael E. Porter3

    Labor Productivity Level and Growth OECD Countries

    Note: Luxembourg omitted. Source: Groningen Growth and Development Centre, Total Economy Database (January 2012). GDP calculated using Geary Khamis calculation methodology.

    Australia

    Austria

    Belgium

    Canada

    Chile

    Czech Republic

    Denmark

    Estonia

    FinlandFrance

    Germany

    Greece

    Hungary

    Iceland

    Ireland

    Israel Italy

    Japan

    Mexico

    Netherlands

    New Zealand

    Norway

    Poland

    Portugal

    Slovakia

    Slovenia

    South Korea

    Spain

    Sweden

    Switzerland

    Turkey

    U.K.

    United States

    $15,000

    $25,000

    $35,000

    $45,000

    $55,000

    $65,000

    -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

    Real GDP per Employee (1990 GK$),

    2011

    Growth in Real GDP per Employee, CAGR, 2001-2011

    OECD Average: 1.20%

    OECD Average: $39,773

  • 20121206—Israel Competitiveness Snapshot—FINAL Copyright 2012 © Professor Michael E. Porter4

    Labor Productivity Growth vs. GDP Growth OECD Countries

    Note: Luxembourg omitted. Source: Groningen Growth and Development Centre, Total Economy Database (January 2012); EIU Data (2012).

    AustraliaAustria Belgium

    Canada

    Chile

    Czech Republic

    Denmark

    Estonia

    Finland

    France Germany

    Greece

    Hungary

    Iceland

    Ireland

    Israel

    Italy

    Japan

    Mexico

    Netherlands

    New Zealand

    Norway

    Poland

    Portugal

    Slovakia

    Slovenia

    South Korea

    Spain

    Sweden

    Switzerland

    Turkey

    U.K.

    U.S.

    -1.0%

    0.0%

    1.0%

    2.0%

    3.0%

    4.0%

    5.0%

    1.5% 2.5% 3.5% 4.5% 5.5% 6.5% 7.5%

    Growth in Real GDP per Employee , CAGR,

    2001-2011

    Growth in Real GDP per Capita (PPP-adjusted), CAGR, 2001-2011

    OECD Average: 4.06%

    OECD Average: 1.20%

  • 20121206—Israel Competitiveness Snapshot—FINAL Copyright 2012 © Professor Michael E. Porter5

    Note: Luxembourg omitted. Source: EIU (2012), authors calculations

    Workforce Participation OECD Countries

    Australia

    Austria

    Belgium

    Canada

    Chile

    Czech Republic Denmark

    Estonia

    Finland

    France

    Germany

    Greece Hungary

    Iceland

    Ireland

    Israel

    Italy

    Japan

    Mexico

    Netherlands

    New ZealandNorway

    Poland

    Portugal

    Slovakia

    Slovenia

    South Korea Spain

    Sweden

    Switzerland

    Turkey

    United Kingdom

    United States

    35.0%

    40.0%

    45.0%

    50.0%

    55.0%

    60.0%

    65.0%

    -3.5% -2.5% -1.5% -0.5% 0.5% 1.5% 2.5% 3.5% 4.5% 5.5% 6.5% 7.5%

    Labor Force Participation (2011)

    Change in Labor Force Participation Rate, 2001-2011

    OECD Average: 1.59%

    OECD Average: 49.09%

    Improving ParticipationDeclining Participation

  • 20121206—Israel Competitiveness Snapshot—FINAL Copyright 2012 © Professor Michael E. Porter6

    Unemployment Performance OECD Countries

    Note: Luxembourg omitted. Source: EIU (2012), authors calculations

    Australia Austria

    Belgium

    Canada

    Chile

    Czech Republic

    Denmark

    Estonia

    Finland

    France

    Germany

    Greece

    Hungary

    Iceland

    Ireland

    Israel

    Italy

    Japan

    Mexico

    Netherlands

    New Zealand

    Norway

    Poland Portugal

    Slovakia

    Slovenia

    South Korea

    Sweden

    Switzerland

    Turkey

    United Kingdom

    United States

    2.0%

    4.0%

    6.0%

    8.0%

    10.0%

    12.0%

    14.0%

    16.0%

    18.0%

    -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

    Unemployment Rate, 2011 (%)

    Change in Unemployment Rate in Percentage Points, 2001-2011

    OECD Average: 1.41%

    OECD Average: 8.52%

    Worsening Unemployment

    Improving Unemployment

    Spain (11.10%, 21.65%)

  • 20121206—Israel Competitiveness Snapshot—FINAL Copyright 2012 © Professor Michael E. Porter7

    Note: Luxembourg omitted. Source: Groningen Growth and Development Centre and The Conference Board, 2012

    Working Hours OECD Countries

    Australia Austria

    Belgium

    Canada

    Chile

    Czech Republic

    Denmark

    Estonia

    Finland

    France

    Germany

    Greece

    Hungary

    Iceland

    Ireland

    Israel

    Italy

    Japan

    Mexico

    Netherlands

    New Zealand

    Norway

    Poland

    Portugal

    Slovakia

    SloveniaSpain Sweden

    Switzerland

    Turkey

    United Kingdom

    United States

    1,200

    1,300

    1,400

    1,500

    1,600

    1,700

    1,800

    1,900

    2,000

    2,100

    2,200

    -0.9% -0.8% -0.7% -0.6% -0.5% -0.4% -0.3% -0.2% -0.1% 0.0% 0.1% 0.2%

    Hours Worked per Employee, 2011

    Change in Hours Worked per Employee, CAGR, 2001-2011

    OECD Average: -0.34%

    OECD Average: 1,750

    Declining Working Hours

    Longer Working Hours

    South Korea (-1.28%; 2,204)

  • 20121206—Israel Competitiveness Snapshot—FINAL Copyright 2012 © Professor Michael E. Porter8

    Productivity

    Country Competitive Environment

    Domestic investment Imports

    Outbound foreign direct

    investment

    Domestic innovation

    Inbound foreign direct

    investment Exports

    Intermediate Indicators and Enablers of Productivity

  • 20121206—Israel Competitiveness Snapshot—FINAL Copyright 2012 © Professor Michael E. Porter9

    Domestic Investment Performance OECD Countries

    Note: Includes inbound FDI; excludes Luxembourg. Source: EIU, 2012

    Australia

    Austria Belgium

    Canada Chile

    Czech Republic

    Denmark

    Estonia

    Finland

    France

    Germany

    Greece

    Hungary

    Iceland

    Israel Italy

    Japan

    Mexico

    Netherlands New Zealand

    NorwayPoland

    Portugal

    Slovakia

    Slovenia

    South Korea

    Spain

    Sweden

    Switzerland

    Turkey

    United Kingdom

    United States

    10.0%

    12.0%

    14.0%

    16.0%

    18.0%

    20.0%

    22.0%

    24.0%

    26.0%

    28.0%

    -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%

    Gross Fixed Investment (% of GDP),

    2011

    Change in Gross Fixed Investment (% of GDP), 2001-2011

    OECD Average: -2.34%

    OECD Average: 19.47%

    Ireland (-12.27%, 10.09%)

  • 20121206—Israel Competitiveness Snapshot—FINAL Copyright 2012 © Professor Michael E. Porter10

    Export Performance OECD Countries

    Note: Luxembourg omitted Source: EIU (2012), authors calculations

    Australia

    Austria

    Belgium

    Canada

    Chile

    Czech Republic

    Denmark

    Estonia