There are several recent studies that The Five Tool Executive should take note of and I will periodically post key take-aways, resources and insights.
This month, I'm focused on the McKinsey Global Institute's findings from their recent Competitiveness Report. There are several warning signs for the US that US multi-nationals in particular and the USG should take note of principally in the FDI, K-12 Education, Talent Recruitment & Retention, and Infrastructure.
McKinsey Global Institute Competitiveness Report 2009-2010
Key Take-Aways
OTHER COUNTRIES ARE CATCHING UP IN THE COMPETITION FOR US MULTINATIONAL CORPORATE INVESTMENT
The United States remains an attractive location for multinational economic activity. The US economy is the largest in the world, with strong patent protection, stable government institutions, high-quality transportation and communications systems, and an abundance of skilled and highly productive workers. But the world is changing. Today, countries in both the developed and developing world are also attractive investment locations, eroding the United States’ advantage (Exhibit 31). Many countries now provide large and growing markets, innovation, and talent that match or exceed those in the United States.
Countries’ competitiveness in attracting investment generally depends on four groups of attributes: economic fundamentals, business climate, human capital, and infrastructure.37 Historically, the developed economies, and the United States in particular, have performed best across these measures of country attractiveness, and it is these countries in the Organisation for Economic Co-operation and Development (OECD) that are home to the bulk of US multinationals’ foreign activity.
Top ten most attractive economies for location of FDI, 2009–10 -- BRIC Countries lead the top five
US infrastructure was graded a “D”in 2009 and needs over $2 trillion in investment
The ability of the United States to sustain some of its advantages will depend in part on its relative performance in K-12 education. A report by the McKinsey & Company Social Sector Office found that the United States faces a significant international achievement gap in primary and secondary education.43 Among the report’s findings:
*In cross-country comparisons of fourth-grade reading, math, and science, US students scored in the top quarter or top half of advanced nations. By age 15, US students ranked in the bottom half.
*In 2006, the United States ranked 25th of 30 nations in math and 24th of 30 in science when the achievement of 15-year-old students was measured in OECD countries. The United States has among the smallest proportions of 15-year-olds performing at the highest levels of proficiency in math.
*Forty years ago, the United States was a leader in high school graduation rates; today, it ranks 18th out of 24 industrialized nations.
Wednesday, July 14, 2010
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