Switzerland has this year become the world’s most competitive economy overtaking the United States, new figures show.

The country moved up one place from its ranking in 2008 to come top out of 133 others in the 2009/2010 Global Competitiveness Report, released by the World Economic Forum on 8 September. The US slipped from the top spot in 2008 taking second this year, the figures show.

Switzerland’s success is in part due to its high spending on R&D and its innovation activities, for which it ranked fourth in the world, behind Finland, the report says.

“Switzerland’s scientific research institutions are among the world’s best, and the strong collaboration between academic and business sectors ensures that much of this research is translated into marketable products and processes, reinforced by strong intellectual property protection,” it says.

After several years of topping the rankings, the US has suffered a number of “escalating weaknesses”, including concerns within the business community about government interference, that this year robbed it of the top spot, the report says.

But the nation’s “excellent” university system and its strong R&D collaborations with industry have helped keep it number one in the world for innovation.

The Science and Development Network reports that Kenya is still the second most innovative country in Sub-Saharan Africa, despite political turmoil after the 2007 elections. The nation came in behind South Africa which took the top spot.