Country Policy Comparisons Framework

For policy-makers, the input provided by executives signals an increased demand and expectation from business leaders that their government leaders better understand the intended and unforeseen consequences policy decisions have on manufacturing competitiveness. The input also signals a call to action from executives to policy-makers to pull the levers their governments have at their disposal in creating regulatory environments that balance policy and competitive needs.

Figure 6 provides a framework of the various instruments and policy levers available to policy-makers in creating environments that promote manufacturing competitiveness. This framework shows the robustness and detail of the Country Policy Comparisons Table, provided, in part, in the appendix. Most importantly, however, is that these policy levers were deemed the most relevant to driving manufacturing competitiveness, based on both CEO input and subject matter expert analysis. The country comparisons in the preceding pages are the underlying fabric and fact base from which executives formulated their recommendations for improving the manufacturing competitiveness of a nation.

Following the framework, the report takes a closer look at two policy issues consistently cited by executives as critical to manufacturing competitiveness, and that have a direct and immediate impact on their organization: tax and energy policy.

Interestingly, the very nature of these two areas and the policies (or lack thereof) addressing each provide a solid basis for an objective, fact-based country-by-country policy comparison. Moreover, the immediate impact of tax and energy policy decisions on business performance makes these two areas of particular importance. 

Certainly, all policy levers are important; however, those regarding education initiatives, science and technology policy, and others often require a much more subjective approach in the absence of comparative data. Furthermore, the impact (positive or negative) for many of these other policy levers is also much less immediate – often not surfacing for years.

For these reasons, the report focuses on solely exploring tax and energy policy.