With coverage of 115 economies worldwide and published for the fifth consecutive year, The Global Information Technology Report (GITR) is an assessment of the impact of information and communication technology (ICT) on the development process and the competitiveness of nations. The Networked Readiness Index (NRI) measures the propensity for countries to leverage the opportunities offered by ICT for development and increased competitiveness. It also establishes a broad international framework mapping out the enabling factors of such capacity.
"Networking and communication technologies are enhancing the way people communicate and exchange ideas, opening the next horizon for creativity, innovation, growth and competitive advantage. The strong link between the Networked Readiness Index and global competitiveness has increased and is evidence of the critical role that these technologies play in any economy or company's strategic plans. The GITR will provide all of us with greater insight and help to guide our future decisions," said John Chambers, President and CEO of Cisco Systems.
The Networked Readiness Index examines an economy's ICT condition on three dimensions: the general macroeconomic, regulatory and infrastructure environment for ICT; the readiness of the three key stakeholders -- individuals, businesses and governments -- to use and benefit from ICT; and their actual usage of the latest information and communication technologies.
Highlights of the Results of the Networked Readiness Index Rankings 2005-2006
- The United States regains the top position in the rankings, reflecting an impressive performance in the areas of ICT physical infrastructure, a broadly supportive market environment and high levels of business and government usage of the latest technologies. The United States continues to lead the world in technological innovation, helped by the excellent quality of its higher education institutions and extensive levels of cooperation between its research bodies and the business community. The United States also stands out for the ready availability of venture capital -- key for start-ups to develop and prosper in what can be a risky sector. Also noteworthy is the prominent role assumed by the private sector in research and development as well as cooperation with the public sector in innovation and ICT penetration. Indeed, 17 of the 36 World Economic Forum Technology Pioneers 2006 come from the United States.
- Singapore, in second place overall, maintains its commanding position having achieved a top-three ranking for the fourth consecutive year. Singapore has an excellent regulatory environment, world-class levels of education and training, and a government that is committed to enhancing the use of the latest technologies across all sectors of the economy -- all in a context of excellent macroeconomic management and persistent efforts to improve the institutional environment for economic activity.
- Nordic countries maintain their positions at the top of the rankings, with Denmark, Iceland, Finland and Sweden in third, fourth, fifth and eighth places respectively. Nordic countries have registered consistently high ICT penetration rates and have occupied places in the top ten positions over the last five years. Their high rankings reflect the same set of factors that have propelled these economies to the top of the world competitiveness league. These factors include highly developed educational institutions which have fostered a strong culture of innovation; transparency in government which has contributed to the emergence of a friendly climate for new business ventures; and a strong predisposition to adopt the latest technologies, in government, the business community and civil society.
- Asia and the Pacific also do extremely well this year with Taiwan, Hong Kong, Korea, Australia and Japan occupying ranks 7, 11, 14, 15 and 16, respectively. India broadly maintains its position with respect to last year (at 40th place) while China drops 9 positions to 50th place, widening the performance gap with respect to India. Especially noteworthy is the showing of Taiwan, gaining 8 positions from last year and entering in the top ten for the first time. The rise of Taiwan as an ICT powerhouse in the last three decades, as a result of intelligent public policies and public-private synergies in the ICT sector, is indeed exceptional and is the object of a specific case study included in the Report this year.
- Estonia leads the eastern European countries with a rank of 23 out of 115 (gaining two positions from last year), thanks to its excellent political and regulatory framework for ICT.
- The highest ranking Latin American countries are Chile (29), Brazil (52) and Mexico (55). Compared with last year's generalized decreasing trend, the region displays a more varied performance this year, with several countries markedly improving their positions, notably Chile (up 6), Mexico (up 5), El Salvador (up 11), Colombia (up 4) and Argentina (up 5). This encouraging development is unfortunately accompanied by a further slide of countries such as Brazil (down 6), Costa Rica (down 8) and Guatemala (down 10).
- Although South Africa drops three positions from 34 last year to 37 this year, the country leads sub-Saharan Africa in terms of networked readiness. Mauritius (ranked 45) and Botswana (ranked 56) follow South Africa. While Mauritius has improved its performance by two positions, Botswana has dropped six positions from last year.
- In other markets, Israel remains the top performer in the Middle East. Posting a rank of 19 overall, Israel shows excellent scores in areas such as technological sophistication, the quality of scientific research institutions, the availability of venture capital, cellular telephones and the latest technologies. Given Israel's excellent ICT performance, this year's Report includes a case study exploring the role government policies had in the development of a first-class ICT industry in the country. The United Arab Emirates (UAE) is the top performer in the Gulf region, with a rank of 28. Tunisia, in position 36, has the highest ranking in North Africa.
The Report is produced by the World Economic Forum in cooperation with INSEAD and is sponsored this year by Cisco Systems.
