Key Takeaways 1

Introduction 4

The Index 5

Overall 13

Knowledge Economy 15

Highly Educated Population 15

Skilled Immigration 17

Professional, Scientific, and Technical Employment 19

Manufacturing Labor Productivity 21

Globalization 23

High-Tech Exports 23

Inward FDI 25

Innovation Capacity 27

R&D Intensity 27

R&D Personnel 29

Venture Capital 31

Business Creation 33

Patent Applications 35

Broadband Adoption 37

Carbon Efficiency 39

AI Preparedness 41

Policy Recommendations 42

Albania 42

Competitiveness Policy 42

Innovation Policy 42

Regional Development Policy 43

Recommendations 43

Austria 43

Knowledge Economy 43

Globalization 44

Innovation Capacity 44

Bosnia and Herzegovina 44

Bulgaria 45

Germany 46

Knowledge Economy 46

Globalization 47

Innovation Capacity 47

Greece 48

Hungary 48

Italy 50

Knowledge Economy 50

Globalization 51

Innovation Capacity 51

Regional Artificial Intelligence Laws and Strategies 52

North Macedonia 53

Competitiveness Policy 53

Innovation Policy 53

Regional Development Policy 54

Recommendations 54

Poland 55

Serbia 55

Competitiveness Policy 55

Innovation Policy 56

Regional Development Policy 56

Recommendations 56

Sweden 57

Knowledge Economy 57

Globalization 58

Innovation Capacity 58

United States 59

Knowledge Economy 59

Globalization 60

Innovation Capacity 60

Conclusion 61

Appendices 62

Appendix A: Composite and Category Scores Methodology 62

Appendix B: Estimation Methodology for Unavailable Data 64

Endnotes 66