Competition and Competitiveness
Since 2009, IEP has been exploring the Israeli economy’s competitiveness compared to other economies, over the last decade.
Our research indicates that in overall ranking, Israel’s position is deteriorating and fails to restore former achievements. This is noticeable mainly in Israel’s scores and ranking in infrastructure, education, institutions and market centralization.
Though Israel still manages to rise up to competitiveness standards set by leading countries in the GCI rankings, such as Switzerland, Sweden, Finland, Japan and the UK, its hope of becoming a desirable destination for international investments may fail, unless the government deals with excessive bureaucracy, labor-market inflexibility and the decreasing level of competition within the Israeli markets.
We therefore recommend putting a special emphasis on Israel's growth engines, such as innovation and entrepreneurship and in particular on the basis of human capital, which is the most important resource in Israel today.