This section complements the Data Tables by providing additional information for all indicators used in the computation of the Global Competitiveness Index, as well as for additional key indicators. In the case of indicators derived from the Executive Opinion Survey (the Survey), the full question and associated answers are provided. For more details on Survey indicators, refer to Chapter 1.3. Indicators that are not derived from the Survey are sourced from international agencies and national authorities. They represent the best available estimates at the time the Report was prepared. It is possible that some data will have been updated or revised after publication.

Key indicators

0.01 Gross domestic product

Gross domestic product in billions of current US dollars | 2013

Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources

0.02 Population

Total population in millions | 2013

Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources

0.03 GDP per capita

Gross domestic product per capita in current US dollars | 2013

Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources

0.04 GDP as a share of world GDP

Gross domestic product based on purchasing power parity as a percentage of world GDP | 2013

Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition)

Pillar 1: Institutions 1.01 Property rights

In your country, how strong is the protection of property rights, including financial assets? [1 = extremely weak; 7 = extremely strong] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.02 Intellectual property protection

In your country, how strong is the protection of intellectual property, including anti-counterfeiting measures? [1 = extremely weak; 7 = extremely strong] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.03 Diversion of public funds

In your country, how common is diversion of public funds to companies, individuals, or groups due to corruption? [1 = very commonly occurs; 7 = never occurs] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.04 Public trust in politicians

In your country, how would you rate the ethical standards of politicians? [1 = extremely low; 7 = extremely high] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.05 Irregular payments and bribes

Average score across the five components of the following Executive Opinion Survey question: In your country, how common is it for firms to make undocumented extra payments or bribes in connection with (a) imports and exports; (b) public utilities; (c) annual tax payments; (d) awarding of public contracts and licenses; (e) obtaining favorable judicial decisions? In each case, the answer ranges from 1 [very common] to 7 [never occurs]. | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.06 Judicial independence

In your country, to what extent is the judiciary independent from influences of members of government, citizens, or firms? [1 = heavily influenced; 7 = entirely independent] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.07 Favoritism in decisions of government officials

In your country, to what extent do government officials show favoritism to well-connected firms and individuals when deciding upon policies and contracts? [1 = always show favoritism; 7 = never show favoritism] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.08 Wastefulness of government spending

In your country, how efficiently does the government spend public revenue? [1 = extremely inefficient; 7 = extremely efficient in providing goods and services] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.09 Burden of government regulation

In your country, how burdensome is it for businesses to comply with governmental administrative requirements (e.g., permits, regulations, reporting)? [1 = extremely burdensome; 7 = not burdensome at all] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.10 Efficiency of legal framework in settling disputes

In your country, how efficient is the legal framework for private businesses in settling disputes? [1 = extremely inefficient; 7 = extremely efficient] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.11 Efficiency of legal framework in challenging regulations

In your country, how easy is it for private businesses to challenge government actions and/or regulations through the legal system? [1 = extremely difficult; 7 = extremely easy] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.12 Transparency of government policymaking

In your country, how easy is it for businesses to obtain information about changes in government policies and regulations affecting their activities? [1 = extremely difficult; 7 = extremely easy] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.13 Business costs of terrorism

In your country, to what extent does the threat of terrorism impose costs on businesses? [1 = to a great extent; 7 = not at all] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.14 Business costs of crime and violence

In your country, to what extent does the incidence of crime and violence impose costs on businesses? [1 = to a great extent; 7 = not at all] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.15 Organized crime

In your country, to what extent does organized crime (mafia-oriented racketeering, extortion) impose costs on businesses? [1 = to a great extent; 7 = not at all] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.16 Reliability of police services

In your country, to what extent can police services be relied upon to enforce law and order? [1 = cannot be relied upon at all; 7 = can be completely relied upon] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.17 Ethical behavior of firms

In your country, how would you rate the corporate ethics of companies (ethical behavior in interactions with public officials, politicians, and other firms)? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.18 Strength of auditing and reporting standards

In your country, how strong are financial auditing and reporting standards? [1 = extremely weak; 7 = extremely strong] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.19 Efficacy of corporate boards

In your country, how would you characterize corporate governance by investors and boards of directors? [1 = management has little accountability to investors and boards; 7 = management is highly accountable to investors and boards] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.20 Protection of minority shareholders’ interests

In your country, to what extent are the interests of minority shareholders protected by the legal system? [1 = not protected at all; 7 = fully protected] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

1.21 Strength of investor protection

Strength of Investor Protection Index on a 0–10 (best) scale | 2013

This indicator is a combination of the Extent of disclosure index (transparency of transactions), the Extent of director liability index (liability for self-dealing), and the Ease of shareholder suit index (shareholders’ ability to sue officers and directors for misconduct). For more details about the methodology employed and the assumptions made to compute this indicator, visit http:// www.doingbusiness.org/methodologysurveys/.

Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises

Pillar 2: Infrastructure

2.01 Quality of overall infrastructure

How would you assess general infrastructure (e.g., transport, telephony, and energy) in your country? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

2.02 Quality of roads

In your country, how would you assess the quality of roads?

[1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

2.03 Quality of railroad infrastructure

In your country, how would you assess the quality of the railroad system? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] | 2013–14 weighted average.

This indicator does not apply to economies where there is no regular train service or where the network covers only a negligible portion of the territory. Assessment of the existence of a network was conducted by the World Economic Forum based on various sources.

Source: World Economic Forum, Executive Opinion Survey

2.04 Quality of port infrastructure

In your country, how would you assess the quality of seaports? (For landlocked countries: How accessible are seaport facilities?) [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

2.05 Quality of air transport infrastructure

In your country, how would you assess the quality of air transport infrastructure? [1 = extremely underdeveloped— among the worst in the world; 7 = extensive and efficient— among the best in the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

2.06 Available airline seat kilometers

Airline seat kilometers (in millions) available on all flights (domestic and international service) originating in country per week (year average) | 2014

This indicator measures the total passenger-carrying capacity of all scheduled flights, including domestic flights, originating in a country. It is computed by multiplying the number of seats available on each flight by the flight distance in kilometers and summing the result across all scheduled flights in a week. The final value represents the weekly average for the year (Jan–Dec), taking into account flights scheduled beforehand by airline companies.

Source: International Air Transport Association, SRS Analyser

2.07 Quality of electricity supply

In your country, how would you assess the reliability of the electricity supply (lack of interruptions and lack of voltage fluctuations)? [1 = not reliable at all; 7 = extremely reliable] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

2.08 Mobile telephone subscriptions

Number of mobile telephone subscriptions per 100 population | 2013

A mobile telephone subscription refers to a subscription to a public mobile telephone service that provides access to the public switched telephone network (PSTN) using cellular technology, including the number of pre-paid SIM cards active during the last three months of the year under review. This includes both analog and digital cellular systems (IMT-2000, Third Generation, 3G) and 4G subscriptions, but excludes mobile broadband subscriptions via data cards or USB modems. Subscriptions to public mobile data services, private trunked mobile radio, telepoint or radio paging, and telemetry services are also excluded. It includes all mobile cellular subscriptions that offer voice communications.

Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators Database 2014 (June 2014 edition)

2.09 Fixed telephone lines

Number of active fixed telephone lines per 100 population | 2013

A fixed telephone line is an active line connecting the subscriber’s terminal equipment to the public switched telephone network (PSTN) that has a dedicated port in the telephone exchange equipment. Active lines are those that have registered an activity in the last three months of the year under review.

Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators Database 2014 (June 2014 edition)

Pillar 3: Macroeconomic environment

General government budget balance as a percentage of GDP | 2013

General government budget balance is calculated as general government revenue minus total expenditure. This is a core Government Finance Statistics (GFS) balance that measures the extent to which the general government is either putting financial resources at the disposal of other sectors in the economy and nonresidents (net lending), or utilizing the financial resources generated by other sectors and nonresidents (net borrowing). This balance may be viewed as an indicator of the financial impact of general government activity on the rest of the economy and nonresidents. Revenue consists of taxes, social contributions, grants receivable, and other revenue. Revenue increases a government’s net worth, which is the difference between its assets and liabilities. General government total expenditure consists of total expenses and the net acquisition of nonfinancial assets.

Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources

3.02 Gross national savings

Gross national savings as a percentage of GDP | 2013 or most recent year available

Aggregate national savings is defined as public- and private- sector savings as a percentage of nominal GDP. National savings equals gross domestic investment plus the current-account balance.

Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); World Bank, At-a-Glance Table; Organisation for Economic Co-operation and Development (OECD), Economic Outlook 2014; national sources

3.03 Inflation

Annual percent change in consumer price index (year average) | 2013

For inflation rates between 0.5 and 2.9 percent, a country receives the highest possible score of 7. Outside this range, scores decrease linearly as they move away from these values.

Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources

3.04 Government debt

Gross general government debt as a percentage of GDP | 2013 or most recent year available

Gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future. This includes debt liabilities in the form of special drawing rights, currency and deposits, debt securities, loans, insurance, pensions and standardized guarantee schemes, and other accounts payable. Thus, all liabilities in the Government Finance Statistics Manual (GFSM) 2001 system are debt, except for equity and investment fund shares, financial derivatives, and employee stock options. For Australia, Belgium, Canada, Hong Kong SAR, Iceland, New Zealand, and Sweden, government debt coverage also includes insurance technical reserves, following the GFSM 2001 definition.

Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition) and Public Information Notices (various issues); African Development Bank, Organisation for Economic Co-operation and Development (OECD), and United Nations Development Programme, African Economic Outlook 2014; national sources.

3.05 Country credit rating

Institutional Investor’s Country Credit RatingsTM assessing the probability of sovereign debt default on a 0–100 (lowest probability) scale | March 2014

Institutional Investor’s Country Credit RatingsTM developed by Institutional Investor are based on information provided by senior economists and sovereign-debt analysts at leading global banks and money management and security firms. Twice a year, the respondents grade each country on a scale of 0 to 100, with 100 representing the least chance of default. Institutional Investor’s “Country Credit Ratings” is a trademark of Institutional Investor, LLC. No further copying or transmission of this material is allowed without the express written permission of Institutional Investor’s publisher, who can be reached at [email protected] Copyright © Institutional Investor, LLC 2014.

Source: Institutional Investor

Pillar 4: Health and primary education

4.01 Malaria incidence

Estimated number of malaria cases per 100,000 population | 2012

This indicator refers to the estimated number of new cases of malaria in the economy per 100,000 population. M.F. and S.L. indicate respectively that the World Health Organization (WHO) has declared the area malaria-free (M.F.) or that it has included it in the supplementary list (S.L.) of areas where malaria has never existed or has disappeared without specific measures. Hong Kong SAR and Puerto Rico have been considered malaria-free (M.F.) following the assessment by the US Centers for Disease Control and Prevention (CDC).

Sources: The World Health Organization, World Malaria Report 2013; United States Centers for Disease Control and Prevention (CDC), Malaria Information and Prophylaxis information (accessed July 11, 2014)

4.02 Business impact of malaria

How serious an impact do you consider malaria will have on your company in the next five years (e.g., death, disability, medical and funeral expenses, productivity and absenteeism, recruitment and training expenses, revenues)? [1 = a serious impact; 7 = no impact at all] | 2013–14 weighted average This indicator does not apply to economies considered free of malaria or included in the World Health Organization’s supplementary list of areas where malaria has never existed or has disappeared without specific measures.

Source: World Economic Forum, Executive Opinion Survey

4.03 Tuberculosis incidence

Estimated number of tuberculosis cases per 100,000 population | 2013

Incidence of tuberculosis is the estimated number of new pulmonary, smear positive, and extra-pulmonary tuberculosis cases.

Sources: The World Bank, World Development Indicators (accessed June 18, 2014); national sources

4.04 Business impact of tuberculosis

How serious an impact do you consider tuberculosis will have on your company in the next five years (e.g., death, disability, medical and funeral expenses, productivity and absenteeism, recruitment and training expenses, revenues)? [1 = a serious impact; 7 = no impact at all] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

4.05 HIV prevalence

HIV prevalence as a percentage of adults aged 15–49 years | 2013

HIV prevalence refers to the percentage of people aged 15–49 who are infected with HIV at a particular point in time, no matter when infection occurred.

Sources: The World Bank, World Development Indicators (accessed June 18, 2014); UNAIDS, Global Report on the Global AIDS Epidemic (2008, 2010, 2012, and 2013 editions); national sources

4.06 Business impact of HIV/AIDS

How serious an impact do you consider HIV/AIDS will have on your company in the next five years (e.g., death, disability, medical and funeral expenses, productivity and absenteeism, recruitment and training expenses, revenues)? [1 = a serious impact; 7 = no impact at all] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

4.07 Infant mortality

Infant (children aged 0–12 months) mortality per 1,000 live births | 2013

Infant mortality rate is the number of infants dying before reaching one year of age per 1,000 live births in a given year.

Sources: The World Bank, World Development Indicators (accessed June 18, 2014); national sources

4.08 Life expectancy

Life expectancy at birth (years) | 2013

Life expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life.

Sources: The World Bank, World Development Indicators (accessed June 18, 2014); national sources

4.09 Quality of primary education

In your country, how would you assess the quality of primary schools? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

4.10 Primary education enrollment rate

Net primary education enrollment rate | 2012

The reported value corresponds to the ratio of children of official primary school age (as defined by the national education system) who are enrolled in primary school. Primary education (ISCED level 1) provides children with basic reading, writing, and mathematics skills along with an elementary understanding of such subjects as history, geography, natural science, social science, art, and music.

Sources: UNESCO Institute for Statistics, Data Centre (accessed May 21, 2014); Organisation for Economic Co-operation and Development (OECD), Education at a Glance 2013; Sistema de Información de tendencias Educativas de América Latina (SITEAL); national sources. 

Pillar 5: Higher education and training

5.01 Secondary education enrollment rate

Gross secondary education enrollment rate | 2012

The reported value corresponds to the ratio of total secondary enrollment, regardless of age, to the population of the age group that officially corresponds to the secondary education level. Secondary education (ISCED levels 2 and 3) completes the provision of basic education that began at the primary level, and aims to lay the foundations for lifelong learning and human development by offering more subject- or skills-oriented instruction using more specialized teachers.

Sources: UNESCO Institute for Statistics, Data Centre (accessed May 21, 2014); UNICEF Childinfo.org (accessed August 07, 2014); Sistema de Información de tendencias Educativas de América Latina (SITEAL); national sources

5.02 Tertiary education enrollment rate

Gross tertiary education enrollment rate | 2012

The reported value corresponds to the ratio of total tertiary enrollment, regardless of age, to the population of the age group that officially corresponds to the tertiary education level. Tertiary education (ISCED levels 5 and 6), whether or not leading to an advanced research qualification, normally requires, as a minimum condition of admission, the successful completion of education at the secondary level.

Sources: UNESCO Institute for Statistics, Data Centre (accessed May 21, 2014); national sources

5.03 Quality of the education system

How well does the education system in your country meet the needs of a competitive economy? [1 = not well at all; 7 = extremely well] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

5.04 Quality of math and science education

In your country, how would you assess the quality of math and science education? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

5.05 Quality of management schools

In your country, how would you assess the quality of business schools? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

5.06 Internet access in schools

In your country, how widespread is Internet access in schools? [1 = nonexistent; 7 = extremely widespread] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

5.07 Local availability of specialized research and training services

In your country, to what extent are high-quality, specialized training services available? [1 = not available at all; 7 = widely available] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

5.08 Extent of staff training

In your country, to what extent do companies invest in training and employee development? [1 = not at all; 7 = to a great extent] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

Pillar 6: Goods market efficiency

6.01 Intensity of local competition

In your country, how intense is competition in the local markets? [1 = not intense at all; 7 = extremely intense] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.02 Extent of market dominance

In your country, how would you characterize corporate activity? [1 = dominated by a few business groups; 7 = spread among many firms] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.03 Effectiveness of anti-monopoly policy

In your country, to what extent does anti-monopoly policy promote competition? [1 = does not promote competition; 7 = effectively promotes competition] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.04 Effect of taxation on incentives to invest

In your country, to what extent do taxes reduce the incentive to invest? [1 = significantly reduce the incentive to invest; 7 = do not reduce the incentive to invest at all] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.05 Total tax rate

This indicator is a combination of profit tax (% of profits), labor tax and contribution (% of profits), and other taxes (% of profits) | 2013

The total tax rate measures the amount of taxes and mandatory contributions payable by a business in the second year of operation, expressed as a share of commercial profits. The total amount of taxes is the sum of five different types of taxes and contributions payable after accounting for deductions and exemptions: profit or corporate income tax, social contributions and labor taxes paid by the employer, property taxes, turnover taxes, and other small taxes. For more details about the methodology employed and the assumptions made to compute this indicator, visit http://www.doingbusiness.org/ methodologysurveys/.

Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises

6.06 Number of procedures required to start a business

Number of procedures required to start a business | 2013

For details about the methodology employed and the assumptions made to compute this indicator, visit http:// www.doingbusiness.org/methodologysurveys/.

Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises

6.07 Time required to start a business

Number of days required to start a business | 2013

For details about the methodology employed and the assumptions made to compute this indicator, visit http:// www.doingbusiness.org/methodologysurveys/.

Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises

6.08 Agricultural policy costs

In your country, how would you assess the agricultural policy? [1 = excessively burdensome for the economy; 7 = balances well the interests of taxpayers, consumers and producers] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.09 Prevalence of trade barriers

In your country, to what extent do non-tariff barriers (e.g., health and product standards, technical and labeling requirements, etc.) limit the ability of imported goods to compete in the domestic market? [1 = strongly limit; 7 = do not limit at all] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.10 Trade tariffs

Trade-weighted average tariff rate | 2013

An applied tariff is a customs duty that is levied on imports of merchandise goods. This indicator is calculated as a weighted average of all the applied tariff rates, including preferential rates that a country applies to the rest of the world. The weights are the trade patterns of the importing country’s reference group (2012 data).

Source: International Trade Centre, Trade Competitiveness Map Data

6.11 Prevalence of foreign ownership

In your country, how prevalent is foreign ownership of companies? [1 = extremely rare; 7 = highly prevalent] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.12 Business impact of rules on FDI

In your country, to what extent do rules and regulations encourage or discourage foreign direct investment (FDI)? [1 = strongly discourage FDI; 7 = strongly encourage FDI] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.13 Burden of customs procedures

In your country, how efficient are the customs procedures (related to the entry and exit of merchandise)? [1 = not efficient at all; 7 = extremely efficient] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.14 Imports as a percentage of GDP

Imports of goods and services as a percentage of gross domestic product | 2013

Total imports is the sum of total imports of merchandise and commercial services.

Sources: World Trade Organization, Statistical Database: Time Series on Merchandise and Commercial Services (accessed July 02, 2014); International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources

6.15 Degree of customer orientation

In your country, how well do companies treat customers?

[1 = indifferent to customer satisfaction; 7 = highly responsive to customers and seek customer retention] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

6.16 Buyer sophistication

In your country, how do buyers make purchasing decisions? [1 = based solely on the lowest price; 7 = based on a sophisticated analysis of performance attributes] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

Pillar 7: Labor market efficiency

7.01 Cooperation in labor-employer relations

In your country, how would you characterize labor-employer relations? [1 = generally confrontational; 7 = generally cooperative] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

7.02 Flexibility of wage determination

In your country, how are wages generally set?

[1 = by a centralized bargaining process; 7 = by each individual company] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

7.03 Hiring and firing practices

In your country, how would you characterize the hiring and firing of workers? [1 = heavily impeded by regulations; 7 = extremely flexible] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

7.04 Redundancy costs

Redundancy costs in weeks of salary | 2013

This indicator estimates the cost of advance notice requirements, severance payments, and penalties due when terminating a redundant worker, expressed in weekly wages. For more details about the methodology employed and the assumptions made to compute this indicator, visit http://www.doingbusiness.org/ methodologysurveys/.

Sources: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises; World Economic Forum’s calculations

7.05 Effect of taxation on incentives to work

In your country, to what extent do taxes reduce the incentive to work? [1 = significantly reduce the incentive to work; 7 = do not reduce incentive to work at all] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

7.06 Pay and productivity

In your country, to what extent is pay related to worker productivity? [1 = not related to worker productivity;

7 = strongly related to worker productivity] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

7.07 Reliance on professional management

In your country, who holds senior management positions? [1 = usually relatives or friends without regard to merit;

7 = mostly professional managers chosen for merit and qualifications] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

7.08 Country capacity to retain talent

Does your country retain talented people? [1 = the best and brightest leave to pursue opportunities in other countries;

7 = the best and brightest stay and pursue opportunities in the country] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey For more details, refer to Chapter 1.3 of this Report

7.09 Country capacity to attract talent

Does your country attract talented people from abroad?

[1 = not at all; 7 = attracts the best and brightest from around the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

7.10 Female participation in the labor force

Ratio of women to men in the labor force | 2012

This measure is the percentage of women aged 15–64 participating in the labor force divided by the percentage of men aged 15–64 participating in the labor force.

Sources: International Labour Organization, Key Indicators of the Labour Markets, 8th Edition; national sources

Pillar 8: Financial market development

8.01 Availability of financial services

In your country, to what extent does the financial sector provide a wide range of financial products and services to businesses? [1 = not at all; 7 = provides a wide variety] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

8.02 Affordability of financial services

In your country, to what extent are financial services affordable for businesses? [1 = not affordable at all; 7 = affordable] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

8.03 Financing through local equity market

In your country, how easy is it for companies to raise money by issuing shares on the stock market? [1 = extremely difficult; 7 = extremely easy] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

8.04 Ease of access to loans

In your country, how easy is it to obtain a bank loan with only a good business plan and no collateral? [1 = extremely difficult; 7 = extremely easy] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

8.05 Venture capital availability

In your country, how easy is it for entrepreneurs with innovative but risky projects to find venture capital? [1 = extremely difficult; 7 = extremely easy] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

8.06 Soundness of banks

In your country, how would you assess the soundness of banks? [1 = extremely low—banks may require recapitalization; 7 = extremely high—banks are generally healthy with sound balance sheets] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

8.07 Regulation of securities exchanges

In your country, how effective are the regulation and supervision of securities exchanges? [1 = not at all effective; 7 = extremely effective] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

8.08 Legal rights index

Degree of legal protection of borrowers’ and lenders’ rights on a 0–10 (best) scale | 2013

This index measures the degree to which collateral and bankruptcy laws protect borrowers’ and lenders’ rights and thus facilitate lending. For more details about the methodology employed and the assumptions made to compute this indicator, visit http://www.doingbusiness.org/methodologysurveys/.

Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises

Pillar 9: Technological readiness

9.01 Availability of latest technologies

In your country, to what extent are the latest technologies available? [1 = not available at all; 7 = widely available] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

9.02 Firm-level technology absorption

In your country, to what extent do businesses adopt new technology? [1 = not at all; 7 = adopt extensively] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

9.03 FDI and technology transfer

To what extent does foreign direct investment (FDI) bring new technology into your country? [1 = not at all; 7 = to a great extent—FDI is a key source of new technology] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

9.04 Internet users

Percentage of individuals using the Internet | 2013

Internet users refers to people using the Internet from any device (including mobile phones) during the year under review. Data are based on surveys generally carried out by national statistical offices or estimated based on the number of Internet subscriptions.

Source: International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition)

9.05 Fixed broadband Internet subscriptions

Fixed broadband Internet subscriptions per 100 population | 2013 or most recent year available

This refers to total fixed (wired) broadband Internet subscriptions (that is, subscriptions to high-speed access to the public Internet—a TCP/IP connection—at downstream speeds equal to or greater than 256 kb/s).

Source: International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition)

9.06 Internet bandwidth

International Internet bandwidth (kb/s) per Internet user | 2013 or most recent year available

International Internet bandwidth is the sum of capacity of all Internet exchanges offering international bandwidth measured in kilobits per second (kb/s).

Source: International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition)

9.07 Mobile broadband subscriptions

Mobile broadband subscriptions per 100 population | 2013 or most recent year available

Mobile broadband subscriptions refers to active SIM cards or, on CDMA networks, connections accessing the Internet at consistent broadband speeds of over 512 kb/s, including cellular technologies such as HSPA, EV-DO, and above. This includes connections being used in any type of device able to access mobile broadband networks, including smartphones, USB modems, mobile hotspots, and other mobile broadband– connected devices.

Source: International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition)

Pillar 10: Market size

10.01 Domestic market size index

Sum of gross domestic product plus value of imports of goods and services, minus value of exports of goods and services, normalized on a 1–7 (best) scale | 2013

The size of the domestic market is calculated as the natural log of the sum of the gross domestic product valued at PPP plus the total value (PPP estimates) of imports of goods and services, minus the total value (PPP estimates) of exports of goods and services. Data are then normalized on a 1–7 scale. PPP estimates of imports and exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP.

Source: World Economic Forum’s calculations. For more details, refer to Appendix B of Chapter 1.1 of this Report.

10.02 Foreign market size index

Value of exports of goods and services, normalized on a 1–7 (best) scale | 2013

The size of the foreign market is estimated as the natural log of the total value (PPP estimates) of exports of goods and services, normalized on a 1–7 scale. PPP estimates of exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP.

Source: World Economic Forum’s calculations. For more details, refer to Appendix B of Chapter 1.1 of this Report.

10.03 GDP (PPP)

Gross domestic product valued at purchasing power parity in billions of international dollars | 2013

Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources

10.04 Exports as a percentage of GDP

Exports of goods and services as a percentage of gross domestic product | 2013

Total exports is the sum of total exports of merchandise and commercial services.

Sources: World Trade Organization, Online Statistics Database (accessed June 18, 2014); International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources

Pillar 11: Business sophistication

11.01 Local supplier quantity

In your country, how numerous are local suppliers? [1 = largely nonexistent; 7 = extremely numerous] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

11.02 Local supplier quality

In your country, how would you assess the quality of local suppliers? [1 = extremely poor quality; 7 = extremely high quality] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

11.03 State of cluster development

In your country, how widespread are well-developed and deep clusters (geographic concentrations of firms, suppliers, producers of related products and services, and specialized institutions in a particular field)? [1 = nonexistent; 7 = widespread in many fields] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

11.04 Nature of competitive advantage

What is the competitive advantage of your country’s companies in international markets based upon? [1 = low- cost labor or natural resources; 7 = unique products and processes] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

11.05 Value chain breadth

In your country, do companies have a narrow or broad presence in the value chain? [1 = narrow, primarily involved in individual steps of the value chain (e.g., resource extraction or production); 7 = broad, present across the entire value chain (e.g., including production and marketing, distribution, design, etc.)] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

11.06 Control of international distribution

To what extent are international distribution and marketing from your country owned and controlled by domestic companies?

[1 = not at all—they take place through foreign companies; 7 = to a great extent—they are primarily owned and controlled by domestic companies] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

11.07 Production process sophistication

In your country, how sophisticated are production processes? [1 = not at all—production uses labor-intensive processes or old technology; 7 = highly—production uses sophisticated and knowledge-intensive processes] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

11.08 Extent of marketing

In your country, to what extent do companies use sophisticated marketing tools and techniques? [1 = not at all; 7 = to a great extent] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

11.09 Willingness to delegate authority

In your country, how do you assess the willingness to delegate authority to subordinates? [1 = not willing at all—senior management takes all important decisions; 7 = very willing— authority is mostly delegated to business unit heads and other lower-level managers] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

Pillar 12: Innovation

12.01 Capacity for innovation

In your country, to what extent do companies have the capacity to innovate? [1 = not at all; 7 = to a great extent] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

12.02 Quality of scientific research institutions

In your country, how would you assess the quality of scientific research institutions? [1 = extremely poor—among the worst in the world; 7 = extremely good—among the best in the world] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

12.03 Company spending on R&D

In your country, to what extent do companies spend on research and development (R&D)? [1 = do not spend on R&D; 7 = spend heavily on R&D] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

12.04 University-industry collaboration in R&D

In your country, to what extent do business and universities collaborate on research and development (R&D)? [1 = do not collaborate at all; 7 = collaborate extensively] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

12.05 Government procurement of advanced technology products

In your country, to what extent do government purchasing decisions foster innovation? [1 = not at all; 7 = to a great extent] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

12.06 Availability of scientists and engineers

In your country, to what extent are scientists and engineers available? [1 = not at all; 7 = widely available] | 2013–14 weighted average

Source: World Economic Forum, Executive Opinion Survey

12.07 PCT patent applications

Number of applications filed under the Patent Cooperation Treaty (PCT) per million population | 2010-2011 average

This indicator measures the total count of applications filed under the Patent Cooperation Treaty (PCT), by priority date and inventor nationality, using fractional count if an application is filed by multiple inventors. The average count of applications filed in 2010 and 2011 is divided by population figures for 2011. In the absence of reliable data on PCT applications for Taiwan (China) and Hong Kong SAR, two advanced economies that are not signatories of the Treaty, the number of applications is estimated as follows: first, we compute the average number of all utility patent applications filed with the United States Patents and Trademarks Office (USPTO) for 2010 and 2011. We then compute the average number of PCT applications for 2010 and 2011, before computing the ratio of the two averages (1.59). For the computation of the two averages, only economies with a two-year average number of at least 100 USPTO applications and 50 PCT applications are considered. Taiwan and Hong Kong are excluded in both cases. We then divide the number of USPTO applications filed by residents of Taiwan (19,892) and Hong Kong (1,024), respectively, by the ratio above in order to produce estimates for PCT applications. As a final step, we compute the estimates per million population—that is, 537.2 for Taiwan and 90.3 for Hong Kong. The estimates are used in the computation of the respective Innovation pillar scores of the two economies.

Sources: Organisation for Economic Co-operation and Development (OECD), Patent Database, (situation as of June 2014); For population: International Monetary Fund, World Economic Outlook Database (April 2014 edition); World Economic Forum’s calculations.