That's not bad by traditional European standards. But it doesn't compare to the U.S.'s recent stellar performance. Yet it has so much going for it that it could be the most dynamic economy in the world. Porter says Europe has a lead over the U.S. in a number of key areas. He says its workforce is better educated.
European companies use energy and raw materials more efficiently than their U.S. competitors.
And the Continent leads in several important businesses, such as mobile telephony and carmaking. Too much red tape, Porter asserts. But it's also because competition in Europe is less intense. And in many sectors of the European economy, competition is lacking. More deregulation would clearly help.