Competitiveness of the EU regions: Comparison of the NUTS 2 regions using Regional Index of Competitiveness

Competitiveness is closely connected with the ability of firm, subsector or country to sell and supply goods and services in a given market, in relation to the ability and performance of other firms, sub-sectors or countries in the same market. This term is usually used in relation with firms or countries, but for the better insight into national competitiveness is necessary to analyze this phenomenon on the level of regions. Presented paper is focused on the competitiveness analysis of the NUTS 2 regions in the countries of European Union. Analysis was determined by availability of necessary data. According to Regional Index of Competitiveness was selected 18 variables for the period of the year 2011 which were latest available data. Analysis included only regions for which were available all the variables in selected period of time, which were 210 European NUTS 2 regions. (Analysis exclude France and some of the Greece, Austrian, German and UK regions). The main aim of paper was comparison of EU regions through number of variables with a focus on Regional Index of Competitiveness. First, all regions were described and compared within selected variables. Then was derived weights for each individual variable using correlation matrix, and the final step of the analysis was construction of the Index which measure competitiveness with respect to the selected indicators. Then, regions were sorted into groups according to the value of constructed indicator. Average value of the constructed index of competitiveness was 0.46 with standard deviation 0.15. Variability measured using coefficient of variation was 32.95 %. The value of median was 0.489 which was slightly over the mean. Distribution of the values in the analyzed group of regions was slightly skewed to the right, which means that most of the regions performed over average. Maximum value was 0.805 in Swedish region Stockholm. Other most competitive regions were Denmark region Hovedstaden, Finnish region Helsinky-Uusimaa, British region Berkshire, Buckinghamshire and Oxfordshire, German Oberbayern, Belgium region Brabant-Wallon, German Stuttgart, Luxemburg and at the 9-th place was Slovak region Bratislaysky kraj. Top ten most competitive regions was closed by Netherland Utrecht. Minimum value of the indicator was in the Romanian region Sud-Est 0.1296. Other least competitive regions after Sud-Est were another Romanian regions Sud-Muntenia, Sud-Vest Oltenia, Centru, Bulgarian region Severozapaden, Hungarian Eszak-Magyarorszag, another Bulgarian regions Severen tsentralen, Yuzhen tsentralen, Romanian Nord-Vest and Italian region Calabria. Least competitive regions were in the Bulgaria, Romania, east-north of the Hungary and South of Italy. On the other hand, most competitive regions were Swedish capital region Stockholm and capital region of Denmark Hovedstaden. At the level of countries were most competitive Sweden, Austria, Germany, United Kingdom, Denmark, Belgium and Netherland. On the other side, the least competitive countries were Romania, Bulgaria. In all analyzed countries were found significant differences between capitol region and the rest.