Introduction
In today’s rapidly changing global landscape, understanding the key drivers of competitiveness is essential for the growth and development of businesses, industries, and economies. The World Economic Forum (WEF) has been instrumental in defining the pillars of competitiveness, which outline the factors that drive productivity and long-term economic growth.
This article describes the pillars of competitiveness and discusses their relevance to the emerging space economy.
The Pillars of Competitiveness
The Global Competitiveness Report, published by the World Economic Forum, identifies twelve key pillars of competitiveness. These pillars are grouped into four categories: Basic Requirements, Efficiency Enhancers, Innovation and Sophistication Factors, and Future Orientation. The following table lists these pillars:
| Category | Pillar |
|---|---|
| Basic Requirements | 1. Institutions |
| Efficiency Enhancers | 2. Infrastructure |
| 3. Macroeconomic Stability | |
| 4. Health and Primary Education | |
| Innovation and Sophistication Factors | 5. Higher Education and Training |
| 6. Goods Market Efficiency | |
| 7. Labor Market Efficiency | |
| 8. Financial Market Development | |
| Future Orientation | 9. Technological Readiness |
| 10. Market Size | |
| Innovation and Sophistication Factors (cont.) | 11. Business Sophistication |
| 12. Innovation |
Relevance to the Space Economy
As the space economy continues to grow and evolve, the pillars of competitiveness become increasingly important in shaping its trajectory. The following table describes the relevance of each pillar to the space economy:
| # | Pillar | Relevance to Space Economy |
|---|---|---|
| 1 | Institutions | Effective governance, regulation, and international cooperation for responsible and sustainable development. |
| 2 | Infrastructure | Investments in physical and digital infrastructure to support space missions, satellite communications, and space data integration. |
| 3 | Macroeconomic Stability | A stable global economic environment for resource allocation to space exploration and commercialization of space technologies. |
| 4 | Health and Primary Education | Healthy and educated individuals to drive innovation and advance our understanding of the cosmos. |
| 5 | Higher Education and Training | Specialized education and training in fields such as astrophysics, aerospace engineering, and satellite technology. |
| 6 | Goods Market Efficiency | Efficient markets for the development and commercialization of new products and services, driving innovation in the space economy. |
| 7 | Labor Market Efficiency | A skilled and diverse workforce with flexible and efficient labor markets to attract and retain top talent in the industry. |
| 8 | Financial Market Development | Access to capital and financial services for the growth of the space economy and investment in research, development, and commercialization of space technologies. |
| 9 | Technological Readiness | Adoption and implementation of new technologies to maintain a competitive edge in the rapidly evolving space sector. |
| 10 | Market Size | A growing space economy that creates a larger market for products and services, attracting more investment and fostering innovation. |
| 11 | Business Sophistication | Adoption of sophisticated management practices and development of advanced value chains to stay competitive and drive growth. |
| 12 | Innovation | A strong innovation ecosystem supported by research institutions, industry collaborations, and government policies for the long-term success of the space economy. |