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Week of November 5 - 11, 2007 |
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NDE-news plans to publish its annual Holiday Books issue in early December, and, as usual, we welcome your suggestions. If you have read any new (published in 2007) and noteworthy books on the topic of entrepreneurship, please send your ideas to editor@nde-news.org. US Tops World Competitiveness Rankings The prestigious World Economic Forum Global Competitiveness Report was released last week, and it identifies the US as the world’s most competitive economy. America’s performance represented a big jump from last year’s rankings where Switzerland received the top spot and the US held sixth place. The report bases its findings on a collection of economic performance measures as well as an assessment of each country’s business sector. The US has always ranked high on various measures of business sector strength; its improved score in 2007 results from improved performance on key macroeconomic indicators. The report notes that the world’s strongest economies are able to combine macroeconomic stability with strong institutions (such as universities and healthy business sector) that foster innovation and sustained prosperity. The top ten competitive economies in this year’s list are (in rank order): the US, Switzerland, Denmark, Sweden, Germany, Finland, Singapore, Japan, the United Kingdom, and the Netherlands. Learn more about the World Economic Forum Global Competitiveness Report 2007-2008. |
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Where Innovation is Happening – Globally and Locally While the US tops the list of the world’s most competitive economies, a new study by the Kauffman Foundation on global intellectual property creation shows that it also dominates that arena as well. But while the United States share of Patent Cooperation Treaty (PCT) applications remains greater than that of any other country, overall its share of international applications (145,300 in 2006) has decreased from 37.4 percent to 34.1 percent in the last four years as other countries have experienced more substantial growth—led by Japan which has nearly doubled its filings during that time period. The study, led by Vivek Wadhwa of Duke University, also breaks down the U.S. data to show which states are leading the way. Delaware, Massachusetts, Minnesota, California and Connecticut top this list of international patent applications. Access the report, U.S.-Based Global Intellectual Property Creation, by Vivek Wadhwa, Ben Rissing, Aneesh Chopra, Ramakrishnan Balasubramanian and Alyse Freilich. |
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Every country, and every society, is challenged by the forces of globalization. Yet, some places—like Singapore and Hong Kong—seem to be doing a pretty good job of responding to these tectonic global changes. Singapore and Hong Kong rank at the top of the 2007 Globalization Index, jointly produced by A.T. Kearney and Foreign Policy magazine. This year’s index tracks 2005 data in categories such as economic integration, technological connectivity, personal contact, and political engagement. Many of the top ranking countries are small. Other top performers include the Netherlands, Denmark, Switzerland and Ireland. The US and Canada are the only large countries that regularly appear in the top rankings. This year’s issue also highlights several countries that have shown great improvements in their rankings. For example, Estonia is lauded for its efforts to reduce it business costs, expand Internet access, and open its economy to foreign investment. Learn more about the 2007 A.T. Kearney/Foreign Policy Globalization Index. Related materials also appear in the November/December 2007 issue of Foreign Policy. |
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While globalization generates great opportunities for business, it is not a risk-free proposition. A new IBM/Wharton School survey of global Chief Financial Officers (CFOs) finds that, over the past three years, sixty-two percent of enterprises with more than $5 billion in annual revenue had encountered a “major risk event” such as a natural catastrophe or a political/economic crisis. The surveyed CFOs also acknowledged that 42% of enterprises were not well-prepared for these events. The study notes an ongoing trend where CFOs are becoming increasingly responsible for managing corporate risk. Yet, only 52% of surveyed enterprises had a formal risk management program in place. The survey also notes the emergence of Integrated Finance Organizations (IFOs), entities that help promote and manage common financial standards and processes within the enterprise. IFOs are still fairly rare (present in only 1 of 7 large enterprises), but they seem to provide real benefits to the bottom line. Firms with IFOs perform better financially, are more resilient, and enjoy improved operational performance. Given these findings, one would expect to see a growing corporate interest in more formal risk management procedures. View a press release summarizing the 2007 Global CFO Survey from IBM’s Institute for Business Value and the Wharton School of Business. |
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A Second Chance for European
Entrepreneurs? Visit the European Union website, “For a Second Chance Policy: To Benefit All of Us.” |
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Keys to European Venture Capital Success A new European Venture Capital Association (EVCA) study examines what Europe’s venture capitalists (VCs) must do to take their industry “to the next level.” The research, based on interviews with key industry leaders, finds that the European VC industry is at a critical decision point. More world-class entrepreneurs are emerging in Europe, yet there is less competition in the VC sector. At the same time, structural barriers that limit the ability to invest across borders are eroding. Thus, European VCs may enjoy an important competitive market advantage. But, VCs will need new approaches to capitalize on these opportunities. They will need to move away from current investment strategies that emphasize risk minimization and instead seek to build a portfolio of companies that have great potential for rapid growth and profitable market exits. View a summary of the October 2007 European Venture Capital Association study, “The European Venture Capital Market: Scaling Beyond Current Boundaries." The full report is available for purchase. |
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The National Dialogue on Entrepreneurship is an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving entrepreneurship around the world. Subscribe now to receive your weekly copy. Archived issues are available online. |
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National Dialogue on Entrepreneurship
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All
stories © 2007 The Public Forum Institute
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