The Netherlands has failed to improve its position on the World Economic Forum’s list of the world’s most competitive economies after falling from fifth to eighth place last year.

The Netherlands remains eighth on the list, sandwiched between Hong Kong and Britain.

Efforts to improve the country’s strategy on innovation have resulted in ‘clearly more technicians and engineers,’ Henk Volberda, who is in charge of the Dutch research, told broadcaster Nos.

The Netherlands also benefits from high levels of education and good infrastructure. However, the cost of employing and sacking staff is seen as a downside. The strong system of collective bargaining means there is little flexibility in setting wages, Volberda said.

Switzerland and Singapore maintain their first and second places but the US has risen from fifth place to overtake Finland for the third top spot.