Luxembourg is ranked second best in Europe in political stability1 and third best for financial market development2. Together these factors have created the environment that is required for a good financial market to thrive and which has attracted several global companies to locate their European Headquarters to Luxembourg.
Besides finance, Luxembourg has a solid ground in ICT and according to the Global Information Technology report 20113, it ranks in the top three in Europe for four categories namely, market environment, political and regulatory environment, government readiness and individual usage.
Innovation and R&D is other sectors in which Luxembourg thrives and it is third in the world when it comes to per capita expenditure on R&D4. With both German and French as native languages, it has easy access to the two largest economies of Europe, and shares borders with both of them.
The most problematic factors for doing business in Luxembourg2 according to the Global Competitiveness Report 2011 are:
• Restrictive labour regulations
• Inadequately educated workforce
• Inefficient government bureaucracy
1 IMD World Competitiveness Yearbook 2010
2 Global Competitiveness Report 2011-2012 (World Economic Forum)
3 Global Information Technology report 2010-2011 (World Economic Forum)
4 IMD World Competitiveness Yearbook 2010