GENEVA
The United States has regained its status as the world’s most competitive economy thanks to strong innovation and excellent universities, according to a survey released Wednesday by the World Economic Forum.
The United States rebounded from sixth place last year to knock Switzerland from the top spot in the “global competitiveness index.” The Swiss were second this year, followed by Denmark, Sweden, Germany and Finland.
The study by the Geneva-based Forum said the United States was boosted by its close cooperation between universities and business on research and development, high intellectual property protection, as well as efficient use of employees and investment.
But increasing public indebtedness in the United States threatens to hamper the country’s growth, it said.
“This danger has most recently been demonstrated by the fallout and contagion caused by the country’s subprime mortgage crisis and the ensuing global credit crunch,” said Dr. Xavier Sala-i-Martin, a professor of economics at Columbia University and one of the authors of the survey.
Sala-i-Martin said the weaknesses “present a risk to the country’s overall competitiveness potential and to the global economy as a whole.”
