Global business school INSEAD has released the 2014 edition of its Global Talent Competitiveness Index (GTCI) in Davos, Switzerland.
India has been ranked 78th globally in terms of talent competitiveness of its human capital, which shows a shortage of skilled workforce in the country.
Switzerland has topped the list of 93 countries, followed by Singapore and Luxembourg in second and third places, respectively.
The index measured a nation's competitiveness based on the quality of talent it can produce, attract and retain.
The study, which focuses on 'growing talent for today and tomorrow', was done in collaboration with the Human Capital Leadership Institute (HCLI), Singapore, and HR solutions provider Adecco Group.
The US and Canada round off the top five. Sweden and the UK are ranked sixth and seventh, respectively, with Denmark (eighth), Australia (ninth) and Ireland (10th) rounding off the top 10.
In a release, Ilian Mihov, Dean, INSEAD, said: "We live in a world where talent has become the core currency of competitiveness - for businesses and national economies alike. Yet there is an all-too-frequent mismatch between education systems and the needs of labour markets. Businesses and governments need new kinds of leaders and entrepreneurs, equipped with the skills that will help their firms and countries to thrive in the global knowledge economy. To help them [in] making the right decisions in an increasingly complex environment, we need the kind of indicators and metrics that GTCI offers."
GTCI 2014 champions include a significant number of small high-income economies. Bruno Lanvin, Executive Director of Global Indices at INSEAD, and co-author of the report, commented: "It's really quite striking that among the top three countries - Switzerland, Singapore and Luxembourg - two are landlocked and one is an island. Faced with specific geographical challenges and a quasi-absence of natural resources, these countries have had no choice but to be open economies, a critical ingredient to being talent competitive."
Lanvin went on to add: "The top countries on this year's GTCI have played the game of globalisation and played it well." Many economies in the 'top 20' have strong immigration traditions, including the US, Canada, Sweden, the UK and Australia. These high performing countries also have long prioritised education, which is also the case in Scandinavian countries in the top 15, i.e., Denmark, Norway (11), and Finland (13).
In 2013, GTCI rankings were dominated by European countries, with only six non-European countries in the top 20: Singapore (two), the US (four), Canada (five), Australia (nine), New Zealand (16) and Japan (20).
BOX: GTCI 2014 Edition Highlights
- Openness is key to talent competitiveness: Switzerland, Singapore and Luxembourg have a high degree of openness to trade, investment, immigration and new ideas, embracing globalisation while leveraging their human resources.
- Fiscally stable countries need talent competitiveness for sustainable development: Mineral or oil rich countries, or those with context-specific competitive advantage, should foster talent competitiveness to ensure sustainable prosperity.
- Talent growth can be internal or external: Some countries like the US and in Europe successfully focus on developing talent within their own borders, while others such as China attract foreign talent or send their elites abroad for further education.
- Countries must consider employability or risk high unemployment: 'Talent for growth' means meeting the actual needs of a national economy. Switzerland, Singapore and the Nordic countries customise their education systems towards appropriate levels of 'employable skills'.
- Education systems need to reconsider traditional learning: Talent development in the 21st century must go beyond traditional formal education and develop vocational skills.
- Technology is changing the meaning of 'employable skills': Technological changes will affect new segments of the labour market, impacting the 250 million 'knowledge workers' globally today.