The Netherlands has risen from 14th to 11th place in the latest edition of IMD business school global competitiveness report, the Financieele Dagblad said on Wednesday.
A number of factors have boosted the Dutch position, including foreign investment, a rise in exports, low youth unemployment and a lack of red tape, the FD quoted the report as saying.
However, rising inflation, a downturn in economic growth and patent applications and limits to immigration were perceived as detrimental to the Dutch competitive position.
The IMD report is compiled using over 300 different criteria. Hong Kong tops the list, followed by the US and Switzerland.