If countries do not perform well as nations, we are and more necessary to have this information available to bench- seeing cities increasingly stepping up to fill the gap. The sixth edition of the Global Talent Competitiveness There remains a strong correlation between income per capita Report GTCI , produced in collaboration with the Adecco Group, and talent performance.
The gap in talent Each year, we identify a burning topic that we believe is between higher- and lower-income countries has increased over central to economic progress. Alongside the country and city the past few years.
This is most notable in Latin America and the talent competitiveness tables, this year we have placed a special Caribbean. Our top-performing countries remain Switzerland, Singa- Entrepreneurial talent combines the creativity, innovation, pore, the United States, and the Nordics—all high-income na- flexibility, adaptability, risk taking, and energy needed to success- tions.
The best-performing upper-middle-income country is fully navigate a world in constant flux. In this report, we provide Malaysia at 27th place, while Rwanda is the highest-ranked low- practical tools and guidance to help countries, cities, and com- income country at 73rd. It is important for global policymakers panies foster entrepreneurial talent and harness its power.
It is now a necessary state of as technology transforms the way we work and live, we can mind for everyone, even the biggest companies. Without this strive to improve talent competitiveness and, therefore, prosper- crucial attribute, we risk falling behind as our economies evolve. Whether you are a freelancer or a multinational, entrepreneurial By sharing best practices, exploring key trends and factors, talent will help you navigate an uncertain future of work.
Countries and cities must foster stand more clearly the challenges ahead and to lay the seeds for an atmosphere of innovation and ideas while also providing en- success in the future.
I am delighted that Tata Communications is contributing to the great idea will come from. Critically, learning mance, although, interestingly, dynamics within income groups should never stop; it must be viewed as a lifelong pursuit. Such developments deserve care- The world is changing faster than ever. Disruption is the ful attention, since new best practices may emerge from all parts norm and opportunities can appear and disappear seemingly in of the world.
In fact, es. Recently, we launched our AI and the Future of Work report, a evolving our skills and giving people the right tools to succeed is global study of business leaders in collaboration with Profes- the surest way to success. In addition to identifying less of age, team, or location—should see themselves in this how Artificial Intelligence AI can enhance cognitive diversity in context.
This mindset people to focus on ideas that move businesses forward. Lifelong will help them move forward, to try new things and to learn from learning is a vital ingredient in the way business leaders must missteps. By instilling an opportunities. This sixth edition of the Global Talent Competitiveness Index Report entrepreneurial talent and competitiveness relate to one anoth- GTCI aims to advance the current debate around entrepreneur- er, and what issues does this raise for policy and decision mak- ial talent, providing practical tools and approaches to leverage ers?
There are conditions under which entrepreneurial talent working in inefficient and risk-averse organisational structures, can thrive and be stimulated. There are others under which it will in which their potential contributions to innovation and growth be stifled, to remain an untapped or wasted resource.
In this initial chapter, we address three topics: 1 how do is that it is both a scarce resource and one that is widely dis- we define entrepreneurial talent? Differences in performance both. In other words, and as emphasised before, entrepre- the physiocrats school of thought ,2 it often relies on a double neurial talent should not be seen as strategic only in nascent source of confusion.
One consists of reducing entrepreneurial and smaller structures, but also in larger organisations as well talent to entrepreneurial traits, focusing on the psyche and char- as central and local governments. Once this is acknowledged, acter of entrepreneurs. The other consists of conflating entrepre- available data and experience point to some practical ways in neurial traits with traits of successful entrepreneurs. The working assump- the case.
This books describe the special biographies and personalities reality is even more acute in developing economies, where SMEs of these great entrepreneurs.
The played by start-ups and unicorns. As under- lined by Katrin Mayer-Haug et al. The Big Five traits are open- understanding of the entrepreneurial engines of ness to experience, conscientiousness, extraversion, agreeable- economic activity.
A significant body of research looking ness, and neuroticism often abbreviated as OCEAN , with each at antecedents to venture performance has identified that dimension containing six facets or lower-level traits. These it has been applied in many fields beyond psychology, including are important issues for institutions and policy makers economics,8 political science,9 and even zoology. In par- The mere fact that entrepreneurial talent cannot be reduced to ticular, successful entrepreneurship is the outcome of how per- personality traits—that, on the contrary, it can be defined as a sonality, human capital, and environment feed into active perfor- combination of skills that can be measured, improved, and bet- mance that is self-starting, proactive, and persistent.
The process ter leveraged—is particularly important in poorer and fast-grow- invariably takes place within the context of a specific national ing economies, since as underlined later in this chapter talent culture. They illustrate this process in a diagram adapted from inequalities tend to increase between rich and poor countries. Lerner et al. All of these successes have been linked icy priorities and targeted action adapted to various economic to the blossoming of specific entrepreneurial talents, incarnated environments.
Note: Entrepreunerial activity ranges from 0 dark blue to dark red ; countries with no available data are shown in white. Zhang and others have long argued mobility, adaptability, and innovation. There are several dimen- that sions of the GTCI that have a bearing on how such entrepreneur- the economic miracle of China in the past three ship is evolving around the world—with respect to both input decades can be attributed to the reallocation of and output components.
This change Skills pillar 6. In particular, the Talent Impact sub-pillar 6. When entrepreneurial talent was the variable New product entrepreneurial activity 6. A closer look at these two measurements can and the economy boomed. Three dominant groups yield insights into the building of entrepreneurial talent. The GTCI variable 6. The success of the of products or services that are new, but also of those that are Chinese economy arises from a gradual replacement of original and not available elsewhere or only to a limited ex- position-based rights with property-based rights that has tent.
Note: Talent impact ranges from 0 dark blue to One also finds in the top 5 for among the top performers on this sub-pillar. This indicates that, this variable countries located in three regions, namely Europe when it comes to the wider role of entrepreneurial talent, it is France, 3rd , Northern America Canada, 5th , and also Western not enough for a country to focus on a single or even a few di- Asia Lebanon, 4th.
Interestingly, Russia is one of the lowest-scor- mensions. Rather, a more holistic course of action must be pur- ing countries in the sample, with Sub-Saharan Africa, South Asia, sued. In this, as in the GTCI at large, it is the talent champions that and Latin America represented among the worst-perfoming have the upper hand: developing strong and vibrant ecosystems regions. Looking picture on the impact of entrepreneurship and innovation in tal- back at the first six years of the GTCI and comparing available ent competitiveness.
The statistical correlation pillar are distinctly more concentrated in terms of income groups between income per capita and talent performance remains and geographic regions Figure 3. High-income countries in high, while some regions seem to be facing continued issues. Such a fluid busi- the case for most of Sub-Saharan Africa, and some of the ness and economic context will clearly favour the countries least-developed economies elsewhere or are witnessing a and organisations that have the ability to mobilise relevant progressive erosion of their talent base as is the case for Latin entrepreneurial talents.
America and the Caribbean in particular. Because entrepreneurial tal- cern for firms, nations, and cities. The critical role already played been devoting significant resources and energy to identify- by cities and regions to set up incubators and accelerators ing ways to measure talent and its related dimensions. But, will become more and more relevant. Currenty, most cities more importantly, the reverse causality link is gaining visibility tend to build talent strategies around similar criteria quality and importance.
This means that analyses and assessments of life, connectivity, and sustainability, e. There, too, entrepreneurial talent will be a key asset. Countries seek to put eco- entrepreneurial talent also has critical roles to play in larger or- nomic and social policies in place that will facilitate this. In such a ganisations and even in governments. All components of the context, governments, businesses, and various other stakehold- innovation ecosystem now need to enhance their efforts to ers need quantitative instruments that can inform their decisions attract, nurture, and retain more entrepreneurial talent.
This as investors, employers, employees, or jobseekers and can help talent should be seen as a state of mind that can be grown, them design and implement better policies in areas such as edu- improved, and nurtured with a mix of policies, incentives, and cation, employment, and immigration, to name a few. This is the management approaches that should be adapted to the spe- purpose of the GTCI. Such approaches include radically ment of talent are remarkably complex and multi-layered.
They different management systems, some of which have not involve a multi-disciplinary endeavour to tackle talent dilemmas originated in the countries with the highest GTCI rankings. Such tactics have yet to be fully reflected issues.
Because the future of ment and talent competitiveness. The GTCI has been designed work will be radically affected by the rapid spread of artifi- to help address this challenge by providing a composite view of cial intelligence itself fed by the internet of things, big data, talent competitiveness applicable to a large number of countries and deep learning , the proportion of salaried workers will this year. Although a number of composite indices con- continue to be reduced and the number of free agents to cerning skills, talent, and human capital have been developed grow.
Simultaneously, new business models especially in a in recent years, both private and public players in the field see platform economy context will emerge, triggering new ways the need for a neutral, global, and respected index that would.
Input Output. Growing talent has traditionally meant education, The Structure of the GTCI Model but its definition should be broadened to include apprentice- In the context of the GTCI, talent competitiveness refers to the set ships, training, and continuous education as well as experience of policies and practices that enable a country to develop, at- and access to growth opportunities although we may acknowl- tract, and empower the human capital that contributes to pro- edge that most skill development occurs through experience, ductivity and prosperity.
Figure 4 in the sense that it combines an assessment of what The more talented the person, the wider the global opportuni- countries do to produce and acquire talents Input and the kind ties he or she can find elsewhere. Retaining talent is thus neces- of skills that are available to them as a result Output. Feedback sary to ensure sustainability, and one of the main components of received on previous editions, additional research, and the avail- retention is quality of life.
In addition, the regulatory, market, busi- ability of new data have allowed refinements to the model, ness, and labour landscapes within a country facilitate or impede though its basic structure is robust and unchanged. Mid-level skills, labelled Vocational and Technical ployees to meet their strategic needs. Attracting talent, in the context of and experience. The impact of VT Skills is measured by the de- national competitiveness, should be viewed in terms of luring gree of employability to which they lead.
Employability is meas- foreign valuable resources, both productive businesses through ured by indicators of skills gaps and labour market mismatches foreign direct investment and the like and creative people and by the adequacy of educational systems. High-level skills,. Their economic impact is of calculation can be found in the Sources and Definitions and evaluated by indicators of innovation, entrepreneurship, and the Technical Notes sections in the Appendices.
Improvements will development of high-value industries. The GTCI generates three main indices dominated by developed, high-income countries see Table 1 on that are the most visible focus for analysis, namely: pages 11—13 , and there is a high correlation between GDP per capita and GTCI scores see Figure 5 on pages 14— The Talent Competitiveness Input sub-index, which is The Statistical Annex to this chapter presents more detailed in- composed of four pillars describing the policies, resources, formation on country performance for the different sub-pillars and efforts that a particular country can harness to foster its and variables.
European countries continue to lead the GTCI talent competitiveness. Enable Pillar 1 reflects the extent rankings; 16 of them are in the top Switzerland maintains its to which the regulatory and business environment—in- position at the top, followed by Singapore and the United States.
It is composed of two pillars describing the current is evolving in countries around the world. The present section, situation of a particular country in terms of Vocational and therefore, takes a longer perspective than the rest of the chap- Technical Skills Pillar 5 and Global Knowledge Skills Pillar ter by comparing performances in the GTCI over two three-year 6.
The Output sub-index is the simple arithmetic average periods: — against — First, comparing and contrasting an earlier period with a later period can be useful for spotting gen- 3. The Global Talent Competitiveness Index GTCI , which eral trends in talent competitiveness that are easily missed in a is computed as the simple arithmetic average of the scores year-by-year analysis.
Second, the identification of such trends registered on each of the six pillars described above. Third, and more technically, the aggregation of three years ables have remained the same. The one modification of note is into a single period allows for some smoothing of annual fluctua- that efforts have been made to strengthen the innovation di- tions in the data that, in turn, results in more reliable conclusions. Although there is always an element of en- Similarly, the aggregation absorbs year-to-year changes because trepreneurship to an innovative activity, it is not the case that an of improvements in the methodology of GTCI.
The model has Only countries that feature in all six GTCI reports are includ- therefore been slightly altered to capture entrepreneurship that ed in the analysis: all in all, 86 countries. Of these, 42 are high- is original and geared to new products and approaches. Switzerland Poland Tunisia YE 10 6. Figure 6 The calculation of the averages of the two three-year peri- GTCI rankings in — and — ods is based on the GTCI scores that the countries have achieved.
African countries placed in the bottom half. However, it should be noted that the big Note: Colours refer to income groups, which range from dark blue high income falls in ranking for Luxembourg and Canada are not the result to brown low income.
Minimum Note: Narrow bars indicate maximum and minimum values; wide bars indicate 25th, 50th, and 75th percentiles. Black bars indicate — values and blue bars indicate — values. There was only one low-income country, so that income group has been excluded.
It is also of interest to take a look at how talent competitive- in Indonesia—the country that has climbed the most in the ness has evolved in the large emerging countries that form the rankings from 77th to 64th —which might well have benefited BRICS group Brazil, Russia, India, China, and South Africa. The from greater openness and a growing economy within a stable results among the five countries vary considerably.
On the one political context. Viewed in this light, it will be interesting to see hand, China up two spots to 41st , India up four spots to 71st , in the years ahead whether the tendency of lower fluctuations and Russia up one spot to 46th improve their rankings some- higher up in the rankings will remain as strong against a back- what, with fairly stable performances in all six pillars. On the drop of greater political and socioeconomic uncertainties in other hand, Brazil and South Africa register two of the largest high-income countries e.
In the case of Brazil, the lower ranking is primarily Groups with High Talent Competitiveness Steam driven by a sub-par performance in the Attract pillar, while, for Ahead, Leaving the Rest Behind South Africa, it is the ranking in the Global Knowledge Skills pillar Given what we know from Figure 6 and, more generally, from that has fallen the most. This suggests, therefore, a general tendency of changes income countries Uganda is the only low-income country in the in rankings especially larger shifts to be more likely at lower sample, which is why that particular group is not included in the positions than at higher ones.
Further in-depth analysis of the figure. By the same token, the distribution of scores across re- frequency and magnitudes of changes in rankings within various gions is also much as expected Figure 8 , with Northern America percentiles corroborates the visual impression of the figure. In the countries are less susceptible to political and socioeconomic case of income groups, it can be seen that the distribution of fluctuations.
Conversely, talent competitiveness in less-devel- scores for the high-income group has shifted upwards, where- oped countries might be expected to be more vulnerable to as the trend is the opposite for the upper-middle-income and short-term vicissitudes, whereby a positive negative change— lower-middle-income groups. More specifically, the 25th, 50th, such as more less business-friendly regulations and greater and 75th percentiles have all increased for high-income coun- lower tolerance of minority groups—can have a relatively large tries, whereas they have decreased for the other two income impact on its GTCI score.
A case in point is talent competitiveness groups, apart from the 75th percentile of upper-middle-income. Maximum 75th percentile 40 Median 25th percentile Minimum. Note: Narrow bars indicate maximum and minimum values; wide bars indicate 25th, 50th, and 75th percentiles the figure for Northern America has only two bars because it contains only two countries: Canada and the United States. The tendencies are similar from a regional perspective, with 2 See in particular Quesnay See World Bank In sum, therefore, there seem to be two opposing trends: talent competitiveness strengthening in groups of countries 6 Mayer-Haug et al.
Considering ways in which individual countries and groups have 8 Almlund et al. This will remain a key objective of the GTCI report in the coming years. Knowledge spillovers and the geography context, and Venkataram Thisse eds. Handbook of urban and regional economics: Cities and geography, Volume 4. Amsterdam: North 13 See in particular Zhang et al. Baumol, W. Entrepreneurship: Productive, unproductive, and destructive.
Talented people can thus work well either with government or business. In Journal of Business Venturing,11 1 , 3— In Berger, G. What makes an entrepreneur? Journal of decades has been due largely to a reallocation of entrepreneurial talent from Labor Economics, 16, 26— Global entrepreneurship monitor 14 Zhang et al.
Personality aspects of entrepreneurship: A look at five entrepreneurs who indicate that their product or service is new to at meta-analyses. Personality and Individual Differences, 51 3 , — Caggese, A.
Entrepreneurial risk, investment, and innovation. Journal of Financial Economics, 2 , — Cappelli, P. Talent management: Conceptual approaches 17 The method and results of this audit are the subject of Chapter 6 in this and practical challenges.
Annual Review of Organisational Psychology and report. Organisational Behaviour, 1, — Are entrepreneurs different across countries? The reason for the apparent year discrepancy is as follows. The role of reports are always printed towards the end of the calendar year. The entrepreneurship in US job creation and economic dynamism.
However, because the launch of the report is held in January, Falck, O. The phantom of the opera: Cultural a change was made in the third edition, whereby the title would refer amenities, human capital, and regional economic growth. Labour to the launch year. Thus, the third edition became The Global Talent Economics, 18 6 , — Competitiveness Index —16; the two subsequent editions were Fallick, B.
Review of Economics and Statistics, 88 3 , — The rise of the creative class. New York: HarperCollins. Personality in nonhuman primates: A review of a methodological adjustment rather than new data.
To some extent, and evaluation of past research. American Journal of Primatology, 72 8 , this potential problem is addressed by the averaging of scores across — Towards a psychology of entrepreneurship: An action theory rather than scores at the pillar level, let alone at the level of indicators— perspective. Foundations and Trends in Entrepreneurship, 5, — Galton, F. Inquiries into human faculty and its development. Gartner, W. Who is an entrepreneur?
Is the wrong question. American 21 There were 39 high-income countries in the sample in — and 40 Journal of Small Business, 12 4 , 11— Southern Asia and, for —, Latin America and the Caribbean could gemconsortium. Personality Saharan African countries included in the analysis.
Adding more countries and political attitudes: Relationships across issue domains and political from the region to the analysis would lower the group median. Greene, F. Ahn, T. Attitudes toward risk and self-employment of young workers.
Labour Economics, 17 2 , — Hsu, D. Entrepreneurs from technology- based universities: Evidence from MIT. Research Policy, 36 5 , — Almlund, M. Bugfix: Fixed installation of mods with borked scripted installers eg. Bugfix: Fixed a crash that could happen when trying to enable a plugin file that failed to link.
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