Informe tecnología 2013

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Informe tecnología 2013

  1. 1. Insight ReportThe Global InformationTechnology Report 2013Growth and Jobs in a Hyperconnected WorldBeñat Bilbao-Osorio, Soumitra Dutta, and Bruno Lanvin, Editors
  2. 2. Insight ReportThe Global InformationTechnology Report 2013Growth and Jobs in a Hyperconnected WorldBeñat Bilbao-Osorio, World Economic ForumSoumitra Dutta, Cornell UniversityBruno Lanvin, INSEADEditors@ 2013 World Economic Forum
  3. 3. The Global Information Technology Report 2013 is aproject within the framework of the World EconomicForum’s Global Competitiveness and BenchmarkingNetwork and the Industry Partnership Programme forInformation and Communication Technologies. It is theresult of a collaboration between the World EconomicForum and INSEAD.Professor Klaus SchwabExecutive ChairmanBørge BrendeManaging Director, Government Relationsand Constituents EngagementRobert GreenhillManaging Director, Chief Business OfficerEDITORSBeñat Bilbao-Osorio, Associate Director andSenior Economist, Global Competitiveness andBenchmarking Network, World Economic ForumSoumitra Dutta, Dean, Samuel Curtis JohnsonGraduate School of Management, Cornell UniversityBruno Lanvin, Executive Director, eLab, INSEADGLOBAL COMPETITIVENESS AND BENCHMARKING NETWORKJennifer Blanke, Chief Economist, Headof the Global Competitiveness andBenchmarking NetworkCiara Browne, Associate DirectorGemma Corrigan, InternRoberto Crotti, Quantitative EconomistMargareta Drzeniek Hanouz, Director, LeadEconomist, Head of Competitiveness ResearchThierry Geiger, Associate Director, EconomistTania Gutknecht, Community ManagerCaroline Ko, Junior EconomistCecilia Serin, Team CoordinatorINFORMATION TECHNOLOGY AND TELECOMMUNICATIONSINDUSTRIES TEAMAlan Marcus, Senior Director, Head of Informationand Communication Technologies IndustriesWilliam Hoffman, Associate Director, Head ofIssue CommunityDanil Kerimi, Associate Director, Head ofGovernment CommunityElena Kvochko, Project Manager, InformationTechnology IndustryDerek O’Halloran, Head of InformationTechnology IndustryAlexandra Shaw, Team Coordinator, InformationTechnology IndustryBruce Weinelt, Director, Head ofTelecommunication IndustryWorld Economic ForumGenevaCopyright © 2013by the World Economic Forum and INSEADAll rights reserved. No part of this publication may bereproduced, stored in a retrieval system, or transmitted,in any form or by any means, electronic, mechanical,photocopying, or otherwise without the prior permission ofthe World Economic Forum.ISBN-10: 92-95044-77-0ISBN-13: 978-92-95044-77-7This report is printed on paper suitable for recycling andmade from fully managed and sustained forest sources.Printed and bound in Switzerland by SRO-Kundig.Visit The Global Information Technology Report page atwww.weforum.org/gitr.We thank Hope Steele for her excellent editing work andNeil Weinberg for his superb graphic design and layout.The terms country and nation as used in this report donot in all cases refer to a territorial entity that is a stateas understood by international law and practice. Theterms cover well-defined, geographically self-containedeconomic areas that may not be states but for whichstatistical data are maintained on a separate andindependent basis.@ 2013 World Economic Forum
  4. 4. The Global Information Technology Report Report 2013 | iiiContentsPreface vBørge Brende and Robert Greenhill (World Economic Forum)Foreword viiCesare Mainardi (Booz & Company)Foreword ixJohn Chambers (Cisco Systems)Executive Summary xiBeñat Bilbao-Osorio (World Economic Forum), SoumitraDutta (Cornell University), and Bruno Lanvin (INSEAD)The Networked Readiness Index Rankings xxiPart 1: The Current Networked Readinessfor Growth and Jobs1.1 The Networked Readiness Index 2013: 3 Benchmarking ICT Uptake and Support forGrowth and Jobs in a HyperconnectedWorld Beñat Bilbao-Osorio (World Economic Forum),Soumitra Dutta (Cornell University), Thierry Geiger(World Economic Forum), and Bruno Lanvin (INSEAD)1.2 Digitization for Economic Growth and 35Job Creation Karim Sabbagh, Roman Friedrich, Bahjat El-Darwiche,Milind Singh, and Alex Koster (Booz & Company)1.3 Convergent Objectives, Divergent Strategies: 43A Taxonomy of National Broadband andICT Plans Robert Pepper and John Garrity (Cisco Systems)1.4 The Importance of National Policy Leadership 53Phillippa Biggs and Anna Polomska (ITU/UNESCOBroadband Commission for Digital Development)1.5 Fiber Broadband: A Foundation for Social 67and Economic Growth Sean Williams (BT)1.6 The Economic Impact of Next-Generation 77Mobile Services: How 3G Connections andthe Use of Mobile Data Impact GDP Growth Chris Williams, Davide Strusani, David Vincent, andDavid Kovo (Deloitte LLP)1.7 Better Measurements for Realizing the 81Full Potential of Health Information Technologies Elettra Ronchi (OECD), Julia Adler-Milstein and Genna R.Cohen (University of Michigan), and Laura P. Winn andAshish K. Jha (Harvard School of Public Health)1.8 Re-Establishing the European Union’s 93Competitiveness with the Next Wave ofInvestment in Telecommunications Scott Beardsley, Luis Enriquez, Wim Torfs, FerryGrijpink, Stagg Newman, Sergio Sandoval, and MalinStrandell-Jansson (McKinsey & Company)1.9 The Big Opportunity for Inclusive Growth 101Mikael Hagström and Ian Manocha (SAS Institute Inc.)Part 2: Case Studies of Leveraging ICTsfor Competitiveness and Well-Being2.1 Colombia’s Digital Agenda: Successes 111and the Challenges Ahead Diego Molano Vega (Ministry of Informationand Communication Technologies of Colombia)2.2 The Metamorphosis to a Knowledge-Based 119Society: Rwanda Alex Ntale (Rwanda ICT Chamber and Private SectorFederation), Atsushi Yamanaka (Rwanda DevelopmentBoard-ICT/Japan International Cooperation Agency), andDidier Nkurikiyimfura (Ministry of Youth and ICT of Rwanda)2.3 E-Government in Latin America: A Review 127of the Success in Colombia, Uruguay, andPanama Miguel A. Porrúa (Organization of American States)@ 2013 World Economic Forum
  5. 5. iv | The Global Information Technology Report Report 2013ContentsPart 3: Country/Economy ProfilesHow to Read the Country/Economy Profiles.................................139Index of Countries/Economies.......................................................141Country/Economy Profiles.............................................................142Part 4: Data TablesHow to Read the Data Tables........................................................289Index of Data Tables......................................................................291Data Tables...................................................................................293Technical Notes and Sources 361About the Authors 367List of Partner Institutes 375Acknowledgments 383@ 2013 World Economic Forum
  6. 6. The Global Information Technology Report Report 2013 | vThe 12th edition of The Global Information TechnologyReport (GITR) is being released at a time of cautiousoptimism after a long period of economic uncertaintythat has transformed the global economic outlook. Whileuncertainty in the euro zone and the risk of politicaldeadlock in the United States still persist and could derailthe tentative economic recovery in developed economies,the risk of a financial and economic meltdown withunprecedented consequences seems more remote than itdid a year ago. Overall, developed economies are strivingto return to higher levels of competitiveness while fightingthe stubbornly high levels of unemployment, especiallyamong youth; at the same time, developing and emergingeconomies are focusing on innovation as a prerequisiteto sustain the high economic growth rates they haveexperienced in the past decade and leapfrog towardhigher levels of economic and social prosperity.Against this backdrop, the role that informationand communication technologies (ICTs) can play tosupport economic growth and the creation of high-quality jobs has never drawn so much attention andresearch. There had been some initial concerns aboutthe risk, in some developed economies, that ICTscould accelerate the delocalization of certain economicactivities toward developing countries. But the benefitsof ICTs are now widely recognized everywhere as animportant source of efficiency gains for companies thatwill allow them to optimize their production function andliberalize resources toward other productive investments.Moreover, ICTs are also increasingly recognized as akey source of innovation that can generate increasedeconomic growth and new sources of high-value-addedjobs. This ability to innovate is essential in the currentinformation revolution that is transforming economic andsocial transactions in our societies.The GITR series has been published by the WorldEconomic Forum in partnership with INSEAD since2002. The Report has accompanied and monitoredICT advances over the last decade as well as raisingawareness of the importance of ICT diffusion andusage for long-term competitiveness and societalwell-being. Through the lens of the NetworkedReadiness Index (NRI), the driving factors and impactsof networked readiness and ICT leveraging have beenidentified, highlighting the joint responsibility of all socialactors—individuals, businesses, and governments.Over time, the series has become one of the most-respected studies of its kind. It is extensively used bypolicymakers and relevant stakeholders as a unique toolto identify strengths on which to build and weaknessesthat need to be addressed by national strategies forenhanced networked readiness.The Global Information Technology Report 2013features the latest results of the NRI, offering an overviewof the current state of ICT readiness in the world. Thisyear’s coverage includes a record number of 144economies, accounting for over 98 percent of globalGDP. A number of essays on the role of ICTs to promotegrowth and jobs in an increasingly hyperconnectedworld, as well as policy case studies on developingICTs, are featured in the Report, together with acomprehensive data section—including detailed profilesfor each economy covered and data tables with globalrankings for the NRI’s 54 indicators.We would like to convey our sincere gratitude to theindustry and international organizations’ experts whocontributed outstanding chapters exploring the linksbetween ICTs and economic growth and job creation,as well as to policy analysts for providing their valuableinsights in the policy case studies.We especially wish to thank the editors of theReport, Soumitra Dutta at the Samuel Curtis JohnsonGraduate School of Management at Cornell University,Bruno Lanvin at INSEAD, and Beñat Bilbao-Osorioat the World Economic Forum, for their leadership inthis project, together with the other members of theGITR team: Thierry Geiger, Danil Kerimi, and ElenaKvochko. Appreciation also goes to Alan Marcus,Senior Director and Head of the Information Technologyand Communication Industries team, and JenniferBlanke, Chief Economist and Head of the GlobalCompetitiveness and Benchmarking Network, as wellas her team: Ciara Browne, Gemma Corrigan, RobertoCrotti, Margareta Drzeniek Hanouz, Tania Gutknecht,Caroline Ko, and Cecilia Serin. Last but not least, wewould like to express our gratitude to our network of167 Partner Institutes around the world and to all thebusiness executives who participated in our ExecutiveOpinion Survey. Without their valuable input, theproduction of this Report would not have been possible.PrefaceBØRGE BRENDE AND ROBERT GREENHILLWorld Economic Forum@ 2013 World Economic Forum
  7. 7. @ 2013 World Economic Forum
  8. 8. The Global Information Technology Report Report 2013 | viiForewordCESARE MAINARDIChief Executive Officer, Booz & CompanyEver since Adam Smith first proposed the theory ofabsolute advantage enjoyed by a country in producinga good or service, policymakers have sought to buildand maintain such an advantage in key sectors of theireconomies. What has become increasingly clear overthe past 12 years that the World Economic Forum andINSEAD have been publishing this Global InformationTechnology Report is the role that informationcommunication technologies (ICTs), and specificallydigitization, plays in the potential development andmaintenance of absolute advantage.Digitization—the mass adoption of connected digitalservices by consumers, enterprises, and governments—is far more than a disruptive wave washing over isolatedindustries. We have long since recognized that reality.Digitization is a fundamental driver of economic growthand job creation the world over—in both developed andemerging markets. And that is not hollow rhetoric—itis confirmed by econometric analysis that Booz &Company has conducted to quantify the actual impactof digitization on a country’s economic output (GDP)and employment. In fact, we have created a DigitizationIndex that scores a country’s digitization level on a scaleof 0 to 100. This level-setter allows us to go beyond theanecdotal evidence of the transformational impact ofICTs and actually measure that impact on economic andsocial factors on a comparative basis.The headline is powerful: despite the continuedsluggishness of economies across the globe, digitizationhas boosted world economic output by nearly US$200billion over the past two years and has created 6 millionjobs. Specifically, our analysis reveals that an increaseof 10 percent in a country’s digitization score drives a0.75 percent growth in its GDP per capita. That same 10percent boost in digitization leads to a 1.02 percent dropin a state’s unemployment rate. These benefits grow as acountry moves along the digitization continuum—in otherwords, increased digitization yields improving returns.Although the net effect of digitization is positive,as you begin analyzing the data by country and sector,certain tradeoffs become apparent. For example,advanced-stage economies in North America andWestern Europe, for a number of reasons, realize feweremployment benefits than developing economies astheir digitization level increases. Their productivityimproves; some jobs get replaced by technologies; andlower-value-added, labor-intensive jobs go overseasto emerging markets where labor is cheaper. On asector-by-sector basis, you see the same effect inhighly digitized industries such as financial services andmanufacturing.Thus no universal prescriptions are available forrealizing the full socioeconomic benefits of digitization—the right formula will vary by country and industry. Butthere is no question that the benefits are there to berealized, and they are substantial for the foresighted andsure-footed.The lesson for policymakers and national leaders isclear: having laid the necessary groundwork by buildingout broadband infrastructure and ensuring access, it isnow time to differentiate around distinctive opportunitiesand capabilities. Governments have a role to play asdigital market makers. That means making deliberatechoices about what sectors furnish the best opportunityfor that absolute advantage Adam Smith described andfocusing on them. It means understanding the tradeoffsbetween job creation and productivity that increasingdigitization brings, and creating mechanisms to offsetpotential job losses. Finally, it means understandingwhat capabilities you must bring as a policymaker toadvancing your country’s digitization agenda. Do youneed to play the role of direct developer, financier, orfacilitator? There are successful models of all threecapability sets in practice today around the world.You have only to open your eyes and apply the rightcapabilities lens to chart the right path forward. Thisyear’s Global Information Technology Report willilluminate the way.@ 2013 World Economic Forum
  9. 9. @ 2013 World Economic Forum
  10. 10. The Global Information Technology Report Report 2013 | ixForewordJOHN CHAMBERSChairman and Chief Executive Officer, Cisco SystemsIt has been almost 30 years since the connectionsthat sparked one of the greatest technologicaltransformations in history were made, creatingan enormous global market for information andcommunication technologies (ICTs) while laying thefoundation for networked readiness. Today the Internetand the applications and the services it supports touchour lives every day. Just as Cisco was at the forefrontof network development in the past, today we envisiona future where everything is connected and amazingthings are possible.More than 99 percent of things in the physicalworld are not linked to the Internet. Yet. But as the worldtransitions into what we call the Internet of Everything(IoE)—the intelligent connection of people, processes,data, and things—only the networked readiness ofcountries will dictate where the IoE will take hold andwho will reap its benefits. Given the economic andsocial potential of this market transition, we are verypleased to again collaborate with the World EconomicForum and INSEAD in the production of this year’sGlobal Information Technology Report and its NetworkedReadiness Index.The IoE and intelligent networking will impact allsectors, creating opportunities for people, businesses,and countries. An intelligent network will be the driver ofthe next round of innovation, productivity enhancement,and employment.Developing the IoE will require close collaborationamong stakeholders in industry, customers, academia,and government. Products and services will bedeveloped commercially, customers will dictate whatsucceeds in the market place, academia can aid inresearch and design, and governments can play arole in maintaining a vibrant and competitive businessenvironment where innovation will flourish.This year’s Global Information Technology Report,focusing on ICTs for growth and jobs, places a spotlighton the role that technology can have in economicgrowth and employment. As highlighted in the researchthat follows, high-speed broadband networks havedemonstrated a positive impact on short- and long-termemployment, and we believe the next wave of Internetdevelopment will further advance the growth effects ofthe network.@ 2013 World Economic Forum
  11. 11. @ 2013 World Economic Forum
  12. 12. Executive SummaryBEÑAT BILBAO-OSORIO, World Economic ForumSOUMITRA DUTTA, Cornell UniversityBRUNO LANVIN, INSEADWhen The Global Information Technology Report (GITR)and the Networked Readiness Index (NRI) were createdsome 12 years ago, the attention of decision makersand investors was on adopting business and financialstrategies that would allow them to develop in thecontext of a fast-moving but nascent Internet economy.Over more than a decade, the NRI has provideddecision leaders with a useful conceptual framework toevaluate the impact of information and communicationstechnologies (ICTs) at a global level, and to benchmarkthe ICT readiness and the usage of their economies.Today, the world has undergone massive changes:the Internet bubble has come and gone, and emergingcountries such as China and India have becomeprominent global users and providers of ICT equipmentand services. Struggling to emerge from the financialcrisis, developed economies are striving to return tohigher levels of growth and competitiveness whilefighting stubbornly high unemployment rates, especiallyamong their youth. Both emerging and developedeconomies are focusing on innovation, competingglobally for talent, resources, and market shares.Information flows and networks have spread acrossborders in ways that could not be imagined before theonset of the Internet, the global adoption of mobiletelephony and social networks, and the rapid growth ofbroadband. Business models have been redefined, theworkplace has been redesigned, small startups haveevolved into large companies, and entire functions ofsociety (education, health, security, privacy) are beingrethought.ICTs, COMPETITIVENESS, GROWTH, AND JOBS: ACOMPLEX RELATIONSHIPThe links between ICTs (their tools, services, and models)on the one hand and the unwavering importance ofcompetitiveness, growth, and jobs on the other havenever before been the subject of so much attention andconcern. This is hardly surprising when one considersthe “pull” of technology: developed economies needto reinvent themselves to maintain or restore theircompetitiveness, retain or regain market shares, andcreate jobs; emerging and developing economies areseeking ways to improve productivity and find newsources of growth through new technologies. Finally,the world needs to collectively address environmentaland social challenges to ensure a more sustainabledevelopment path and a better quality of life for itspeople.On the “push” side, technological progresscontinues at a relentless speed. The growing availabilityof technology has empowered citizens of both developedand emerging economies with fairly good access to thedigital world. The rise of cloud computing has reducedthe competitive differentials in technology availabilityacross larger and smaller firms. Low entry barriers in thedigital space have sparked creativity and given rise to aclass of young entrepreneurs around the world. It is clearthat ICTs offer higher benefit-to-cost ratios in all sectorsof production, while simultaneously offering new ways tocreate value by better and more efficiently organizing theuse of natural, financial, and human resources.Numerous studies have been presented in theliterature on the connections between ICTs on theone hand, and development and growth on the other.Although the first analyses of the economic impactof fixed telephone density on economic growth wereconducted more than three decades ago,1such studieshave proliferated in recent years. Despite the ubiquityof ICTs in society and business, such research hasnot been easy. For one thing, the pace of adoption ofmany technologies (broadband, mobile, etc.) has beenfast and recent—thus limiting the validity of longitudinalstudies and making it difficult for data collectionagencies to keep pace with the definition and collectionof appropriate metrics. Also, it remains challenging toisolate the impact of ICTs as their economic impactshave often occurred when combined with other broadsocial and business changes.For more than a decade, the NRI has includedaspects of how ICTs are transforming the economyand society. Among the expressions of transformationis the development of new skills that are important inknowledge-based, information-rich societies and thatare crucial for employment. Despite the fact that ICTs arebecoming increasingly universal, the question of accessand usage remains important—especially for developingcountries, given their need to narrow the digital divide.The NRI includes features related to access and usagethat cover not only affordable ICT infrastructure butThe Global Information Technology Report Report 2013 | xi@ 2013 World Economic Forum
  13. 13. also digital resources, including software and skills. Inaddition, the NRI includes proxies to assessing some ofthe economic and social impacts accruing from ICTs.Thus, the Index facilitates the identification of areaswhere policy intervention—through investment, smartregulation, and/or incentives—could boost the impact ofICTs on development and growth.PART 1: THE CURRENT NETWORKED READINESSLANDSCAPEPart 1 presents the latest findings of the NRI, offeringa comprehensive assessment of the present stateof networked readiness in the world. Furthermore, anumber of expert contributions inquiring into the relationbetween ICTs and growth and jobs in the currenteconomic and digital context are also included. Theserelate to (1) the role of digitization for economic growthand job creation; (2) the description of a taxonomy ofnational broadband and ICT plans; (3) the importance ofnational policy leadership; (4) the role of fiber broadbandfor economic and social growth; (5) the economic impactof next-generation mobile technologies; (6) the need forbetter measurement to realize the potential of healthinformation technologies; (7) the role of ICTs for Europeto regain its competitiveness, and (8) the potential of ICTsto support social inclusion.Insight from the NRI 2013 on the world’s networkedreadinessGiven the potential high returns that ICTs can providein transforming a nation’s economy and its citizens’well-being, assessing ICT developments has been theobject of much academic and policy attention in the pastdecade. Several organizations have made significantefforts to measure and benchmark ICT deploymentand uptake, but few have aimed at equally assessingthe returns that ICTs can actually provide to both theeconomy and society. Although data availability isstill scarce in terms of ICT impacts, policy interest inmeasuring ICTs has shifted from measuring ICT accessto measuring ICT impacts.Last year, after two years of research andconsultations with ICT practitioners, policy and industryexperts, and academia, a new subindex on ICT impactsthat aimed at holistically assessing the way thatcountries go about leveraging ICTs and benefiting fromthem in terms of enhanced competitiveness and well-being has been introduced in the NRI. This evolutionensures that the NRI framework remains at the forefrontof ICT measurement. As one of the most authoritativeassessments of its kind, it has been adopted by severalgovernments as a valuable tool for informing theircompetitiveness and policy agendas.As a result, the framework gauges:• the friendliness of a country’s market and regulatoryframework in supporting high levels of ICT uptake;• the degree of a society’s preparation to make gooduse of an affordable ICT infrastructure;• the efforts of the main social agents—that is,individuals, business, and government—to increasetheir capacity to use ICTs as well as their actual useof ICTs in day-to-day activities; and• the broad economic and social impacts accruingfrom ICTs and the transformation of a countrytoward an ICT- and technology-savvy economyand society.As in previous editions, the NRI is composed of amixture of quantitative data collected by internationalorganizations—such as International TelecommunicationUnion (ITU), other UN agencies, the Organisation forEconomic Co-operation and Development (OECD), andthe World Bank—and survey data from the ExecutiveOpinion Survey (the Survey), conducted annually bythe Forum in each of the economies covered by theReport. The NRI 2013 covers a record number of 144economies, accounting for over 98 percent of world GDP.In terms of the results (see the NetworkedReadiness Index Rankings provided on page xix), twogroups of economies dominate the NRI: NorthernEuropean economies and the so-called Asian Tigers.Among the Northern European countries, four out of thefive Nordic economies featured in the NRI—Finland,Sweden, Norway, and Denmark (in rank order)—continueto feature in the top 10. Iceland, the last of the Nordics,is not too far behind, at 17th place. The performanceof this group in terms of readiness is particularlyoutstanding. All five Nordics feature in the top 10 of thissubindex. Within this subindex, on the infrastructureand digital content pillar, four countries occupy the toppositions. As highlighted in the previous edition andin this Report, the gap between those countries andthe ones in the Southern and Eastern parts of Europeis profound. A second group of economies that postsa remarkable performance are the Asian Tigers:Singapore, Taiwan (China), the Republic of Korea, andHong Kong SAR. All boast outstanding business andinnovation environments that are consistently rankedamong the most conducive in the world. The Tigers alsostand out for their governments’ leadership in promotingthe digital agenda, and the impact of ICTs on societytends to be larger in these economies.Finland (1st) reaches the top of the NRI rankingsfor the first time, thanks to improvements across theboard. The country shows progress on two-thirds ofthe 54 indicators of the NRI and posts a very consistentperformance across all categories of the NRI. Singaporexii | The Global Information Technology Report Report 2013Executive Summary@ 2013 World Economic Forum
  14. 14. remains 2nd overall, while slightly improving its score.The extreme efficiency and business friendliness ofits institutional framework, strong intellectual propertyprotection, intense competition, and high universityenrollment rate lead to these outstanding outcomes.Sweden (3rd) maintains its score, but declines twopositions and abandons the top spot to Finland. Despitethis slight decline in rankings, the country undeniablyremains one of the few truly knowledge-basedeconomies of this world.Up three notches, the United Kingdom (7th)posts the biggest rank improvement among the top10 economies. The country offers one of the mostconducive environments for ICT development. Inparticular, it offers a sound and conducive political andregulatory environment (7th). The country also boastshigh levels of ICT adoption. ICTs are pervasive amongthe population, businesses, and the government. Downone, the United States slips to 9th place despite aperformance essentially unchanged from the previousyear. This constitutes the country’s worst showing sincethe first edition of the GITR in 2001, in which it ranked1st, although changes to the methodology and in thecomposition of the NRI over time cause the results not tobe strictly comparable. The country still possesses manystrengths, however, which have contributed to making itthe world’s innovation powerhouse for decades.Several European countries continue to leadthe rankings, showcasing their strong efforts andcommitment to fully develop and leverage ICTs toboost their competitiveness and the well-being oftheir citizens. Within the European Union (EU), whilestark intra-regional disparities persist, it is worth notingthat the divergence across Member States in theNRI is significantly narrower than it is in the GlobalCompetitiveness Index,2the most comprehensiveanalysis for measuring the set of policies, institutions,and factors that drive the productivity of an economy.This reflects the longstanding efforts of the EuropeanUnion to narrow the digital divide in Europe and buildan internal digital market, as corroborated by the launchof a new Digital Agenda for Europe,3one of the sevenflagship initiatives of the European Commission’s Europe2020 Strategy for growth and jobs for the presentdecade.Within the Commonwealth of Independent States,several countries have fully recognized the potentialof ICTs to leapfrog and diversify their economies, andimportant progress has been recorded since last year.Asia is home to some of the world’s wealthiest,most successful economies in the world and also tosome of its poorest. Unsurprisingly, a similarly profounddiversity characterizes Asia’s digital landscape, thusmaking it impossible to draw a uniform picture of theregion. The most digitized and innovative nations—theAsian Tigers—on the planet are next to some of theleast-connected ones. Nowhere else does the regionaldigital divide run as deeply as it does in Asia. Regardlessof their position on the development ladder, all Asianeconomies have much to gain from increased networkedreadiness. It will allow populations of the least-advancedcountries to gain access to much-needed basic services,improved government transparency and efficiency,and—for the most advanced, many of which suffer fromanemic economic growth—it will contribute to boostingtheir innovation capacity. The NRI reveals that in thecase of Asia’s best-performing economies, governmentstypically lead the digital effort, unlike in Europe. At theheart of Asia, and representative of its immense diversity,the Association of Southeast Asian Nations (ASEAN)is fairly dynamic. Led by Singapore, all eight ASEANmembers covered by the NRI improve their overall scoreand a majority progress in the rankings, albeit in somecases—such as Cambodia and the Philippines—from alow base.Digitally connecting the hemisphere remains oneof the key challenges for Latin America and theCaribbean, as recognized during the Sixth Summit ofthe Americas, which took place in Colombia in April2012.4While several countries have made remarkableimprovements that are clearly reflected in importantgains in the scores and rankings of the NRI—includingPanama, Mexico, Colombia, and El Salvador—overall,Latin American and the Caribbean still suffers froma serious lag that prevents it from fully leveraging thepotential of ICT to boost the regional productivity. Thesocial and, most remarkably, economic impacts accruingfrom ICTs remain low in comparison with other regionsdespite government-led efforts to develop and upgradeICT infrastructure and also despite governments’increasing use of the Internet to communicate andinteract with individuals and the business community.Weaknesses in the political and regulatory environment,the existence of large segments of the population with alow skill base, and poor development of the innovationsystem are all factors hindering the potential that ICTdevelopments could have on the regional economy.Sub-Saharan Africa has continued to makesignificant efforts to build its ICT infrastructure, asreflected by important improvements in developing itsbroadband infrastructure and the expansion of its mobilenetwork coverage. As a result, ICT usage, while stillvery low, has picked up slightly, as seen especially byan increase in the number of Internet users and also bythe continued commitment of some governments in theregion to expand the number of available online services.Despite this positive trend, the stubbornly high sharpdigital divide from more advanced economies, notablyin terms of ICT-driven economic and social impacts,persists. A still-costly access to ICT infrastructure,The Global Information Technology Report Report 2013 | xiiiExecutive Summary@ 2013 World Economic Forum
  15. 15. relatively low levels of skills with low educationalattainments, and unfavorable business conditions forentrepreneurship and innovation are hindering theregion’s capacity to fully leverage the potential of theincreasingly available ICT infrastructure. As a result, onlytwo countries—Mauritius (55th) and South Africa (70th)—are positioned in the top half of the rankings, while nineout of the bottom ten belong to the region.The Middle East and North Africa region boastsone of the most diverse performances in the world.On the one hand, Israel and several Gulf CooperationCouncil states have sharply improved their overallperformances and have continued their investments tomake ICTs one of the key national industries that attemptto diversify and transform their economies. On the otherhand, several North African and Levant nations haveeither fallen—or stagnated, in the best cases—in theirefforts to leverage ICTs as part of their economic andsocial transformation process toward more knowledge-intensive activities and open societies.Digitization for Economic Growth and Job Creation:Regional and Industry PerspectivesChapter 1.2, contributed by Karim Sabbagh, RomanFriedrich, Bahjat El-Darwiche, Milind Singh, and AlexKoster at Booz & Company, analyses the rise ofdigitization—the mass adoption of connected digitalservices by consumers, enterprises, and governments—as a key economic driver that accelerates growthand facilitates job creation. In the current contextof a sluggish global economy, digitization can playan important role in assisting policymakers to spureconomic growth and employment. Booz & Company’seconometric analysis estimates that, despite theunfavorable global economic climate, digitization hasprovided a US$193 billion boost to world economicoutput and created 6 million jobs globally over the pasttwo years.5However, the impact of digitization by countryand by sector is uneven. Developed economies enjoyhigher economic growth benefits by a factor of almost25 percent, although they tend to lag behind emergingeconomies in job creation by a similar margin. Themain reason for the differing effects of digitizationlies in the economic structures of developed andemerging economies. Developed countries rely chieflyon domestic consumption, which makes nontradablesectors important. Across developed economies,digitization improves productivity and has a measurableeffect on growth. However, the result can be job lossesbecause lower-skilled, lower-value-added work is sentabroad to emerging markets where labor is cheaper. Bycontrast, emerging markets are more export-orientedand driven by tradable sectors. They tend to gain morefrom digitization’s effect on employment than from itsinfluence on growth.Policymakers can harness these varying effects ofdigitization through three main measures that go beyondtheir current roles of setting policy and regulations. First,they should create digitization plans for targeted sectorsin which they wish to maximize the impact of digitization.Second, they should encourage the development of thenecessary capabilities and enablers to achieve thesedigitization plans. Finally, policymakers should workin concert with industry, consumers, and governmentagencies to establish an inclusive ICT ecosystem thatencourages greater uptake and usage of digital services.Convergent Objectives, Divergent Strategies: ATaxonomy of National Broadband and ICT PlansIn Chapter 1.3, Robert Pepper and John Garrity fromCisco Systems analyze the wide range of formalbroadband policies around the world. A critical questionnow is whether the divergence in policy packages willresult in significant differences in the efficacy of plans.To begin this research and establish a foundationfor understanding the global landscape of nationalbroadband and ICT plans, this chapter reviewsplans around the world and presents a taxonomyfor classification. The authors first detail the existingrelationship among broadband, economic growth,and employment. Next they analyze a cross-sectionof national plans, their objectives, and their policycomponents. Subsequently they propose a taxonomyexamining the degree of broadband supply- anddemand-side emphasis. This taxonomy establishes acommon language that can guide governments throughthe development of national broadband plans and servesas a baseline for evaluating the factors of success forimplemented plans.They find that as countries around the world havedeveloped national plans to accelerate broadbandadoption, the plans vary by both goals and policyrecommendations. Their taxonomy of broad-based,supply-driven, demand-driven, and emergent plansprovides a clear method for categorizing nationalbroadband and ICT plans on the breadth of their policyoptions; the classification also provides a starting pointfor the review and comparison of national plans. Further,it can aid policymakers in countries with strategic plansunderway as they work to increase broadband adoption.The Importance of National Policy LeadershipChapter 1.4, contributed by Phillippa Biggs and AnnaPolomska at the ITU/UNESCO Broadband Commissionfor Digital Development, evaluates recent growth innational broadband plans and the importance of nationalpolicy leadership for driving the rollout of broadbandnetworks, services, and applications. In light of recentevidence for strong positive externalities to investmentsin broadband networks, rapid technological evolution,and a changing institutional environment, the chapterxiv | The Global Information Technology Report Report 2013Executive Summary@ 2013 World Economic Forum
  16. 16. explores the changing role of policymakers in helping tofacilitate and set national policy.A growing number of countries now recognizethe importance of policy leadership and a clear cross-sectoral vision to maximize the economic and socialreturns to ICTs, as shown by strong growth in thenumber of national broadband plans. This chapterprovides a brief overview of the growth in these plansand the key characteristics of good ones, with referenceto several examples: the US, UK, and Polish nationalbroadband plans.Fiber Broadband: A Foundation for Social andEconomic GrowthIn Chapter 1.5, Sean Williams from BT highlights the factthat, as the foundation for knowledge- and ICT-basedjobs, fiber broadband has the potential to drive socialand economic growth and help create jobs. As Europe,and the wider developed world, look to emerge from therecent financial crisis and downturn, such growth will bevital. The issue is not whether fiber broadband can helpdrive social and economic growth, but how the visionof coverage as close as possible to 100 percent can beachieved.This chapter aims to advance the debate in twoways: first, by reviewing recent independent researchfrom Regeneris, an economic development consultingfirm, detailing the economic impact of high-speedbroadband infrastructure on environments as diverse ascapital cities and economically deprived rural regions.And second, by articulating technical and marketsolutions that are fit for purpose in the current economicclimate.The chapter recommends policy responses thatnational governments and regional authorities shouldimplement to put these solutions into action.The Economic Impact of Next-Generation MobileServices: How 3G Connections and the Use ofMobile Data Impact GDP GrowthIn Chapter 1.6, Chris Williams, Davide Strusani, DavidVincent, and David Kovo from Deloitte LLP argue thatthe mobile telecommunication sector continues to offerunprecedented opportunities for economic growth inboth developing and developed markets, and that mobilecommunication services have become an essential partof how economies work and function.As technology develops, mobile telephony hasthe potential to impact economic development furtherthrough the provision of high-value 3G and 4G dataservices accessed via smartphones, tablets, anddongles that deliver mobile data services to businessesand consumers. For the first time, applying econometricanalysis, the authors studiy the impact, on GDPper capita growth, of consumers substituting a 2Gconnection with a 3G connection and, based on datafrom Cisco Systems, the impact of increasing usage ofmobile data per 3G connection. This study finds that:• For a given level of mobile penetration, a 10 percentincrease in 3G penetration increases GDP per capitagrowth by 0.15 percentage points.• A doubling of mobile data use is associated with anincrease in the GDP per capita growth rate of 0.5percentage points.These results suggest that policy activity shouldfocus on increasing 3G penetration and mobile dataconsumption. This focus should include makingspectrum available for mobile broadband andencouraging the substitution of basic mobile serviceswith more-advanced 3G connections.Better Measurements for Realizing the Full Potentialof Health Information TechnologiesHealthcare has become an increasingly dominant topicof discussion in recent years because of rising costsand the need to improve the efficiency and quality ofhealthcare delivery. Although ICTs cannot, alone, providethe solution for overcoming these issues, they are seenby many governments as potentially playing a significantrole as enablers of the changes required in healthsystems.In light of this, a critical question now facingpolicymakers is how to realize the full potential ofthese technologies, particularly since the challenges toachieving widespread ICT adoption and use are provingdaunting.In Chapter 1.7, Elettra Ronchi from the Organisationfor Economic Co-operation and Development (OECD),Julia Adler-Milstein and Genna R. Cohen from theUniversity of Michigan, and Laura P. Winn and AshishK. Jha from the Harvard School of Public Health arguethat countries have much to gain by combining theirefforts and sharing the burden of developing comparablemeasures for evidence-based policy in this sector. Risk,delay, and cost can be minimized by learning from goodinternational practices.The chapter reviews what is currently knownabout the state of implementation of ICTs in the healthsector across OECD countries and the benefits thatcan be realized from these technologies, including theopportunities for economic growth. It then discussesthe efforts, led by the OECD, to develop a common setof indicators, describing the policy motivation for thiswork, the process followed, the current status of thesemeasures, and the key remaining challenges.The Global Information Technology Report Report 2013 | xvExecutive Summary@ 2013 World Economic Forum
  17. 17. Re-Establishing the European Union’sCompetitiveness with the Next Wave of Investmentin TelecommunicationsIn Chapter 1.8, Scott Beardsley, Luis Enriquez, WimTorfs, Ferry Grijpink, Stagg Newman, Sergio Sandoval,and Malin Strandell-Jansson from McKinsey & Companyargue that Europe’s fixed and mobile telecommunicationnetworks need a massive upgrade to satisfy burgeoningconsumer demand for new Internet services. McKinsey& Company estimates that modernizing the EU-15’s fixedtelecommunication infrastructure to give all householdsaccess to high-speed broadband will take €200 to €250billion, while revamping Europe’s mobile infrastructure tooffer 4G services to 95 percent of the region’s populationwould cost another €50 to €70 billion.Unless they make investments on this scale,Europe’s economies risk losing technology leadershipacross the telecommunication value chain to Asia andthe United States. High-speed network investment is farahead in both regions. For instance, around 64 percentof 4G mobile subscriptions worldwide are in NorthAmerica, 33 percent in Asia Pacific, but only 3 percentin Europe. Value-added by the US telecommunicationindustry grew in real terms by 18 percent from 2007 to2010, but only 7 percent in Europe.Downward pressure on both wholesale andretail prices is choking growth and profitability amongEurope’s telecommunication players, hindering themfrom meeting their investment challenge. This chapteroffers four ideas for shaping a region-wide policyframework that could lift those constraints:• Allow a reduction in the number of fixed andmobile operators. Europe’s consumers could bebetter served by an industry with fewer players thatare strong enough to make large investments butsufficiently plentiful to ensure vibrant competition.• Allow more pricing flexibility, so operatorsget a proportionate return from customers whogenerate the most data traffic and take up the mostbandwidth.• Restrict wholesale access regulation to a fewbasic services, and allow “regulatory” holidays.This would give operators a better chance ofrecouping their investments.• Release more spectrum to operators, giving themmore options for extending network capacity.The Big Opportunity for Inclusive GrowthThe social and economic environment is changing,and the way that business and government look at theeconomy must change with it. If not, we run the risk ofsocial exclusion and further economic slowdown.Big data is a new asset class that has greatpotential to help resurrect the global economy. Unlikeother essential assets—oil and water, for instance—itexists in abundance and can help reduce conflict andtension instead of proliferating discord.In Chapter 1.9, Mikael Hagström and Ian Manochafrom SAS Institute Inc. identify how big data andanalytics can help energize the economy throughefficiency, innovation and creative gains, by:• using big data to stimulate new ways of doingbusiness;• using linguistic-based analytics to formulate policiesand target action plans to tackle unemploymentbefore problems manifest themselves;• using big data and analytics to match people to jobsand jobs to people more proactively—the chapterdraws on experiences at the national and stategovernment level, and from working with financialinstitutions; and• putting the tools and methods of analytics intothe hands of an existing workforce to industrializethe service economy (the sleeping giant), muchas Henry Ford’s innovation industrialized factoryproduction.The chapter analyzes advances in ICTs andcurrent applications—such as how a major retailorganization comes to understand what customerswant (what products, where, and when) and the flowof this information back down their supply chain tomanufacturers, based on demand. Such approachescan help ensure we have qualified labor in the rightlocation at the right time.PART 2: CASE STUDIES OF LEVERAGING ICTS FORCOMPETITIVENESS AND WELL-BEINGPart 2 presents deep-dive studies of selected nationalexperiences of leveraging ICTs or developing thesector, showcasing the main challenges faced andthe articulation of strategies to overcome them. In thisedition, the cases of Colombia and Rwanda, as well asa comparative case study of e-government in three LatinAmerican countries, are presented.Colombia’s Digital Agenda: Successes andChallenges AheadIn recent years, the ICT sector has gained importancein Colombian public policy because the government hasgiven priority to the development of Plan Vive Digital,which seeks to give the country a technological leapforward that affects the economy and developmentin a positive way, reducing poverty and increasingcompetitiveness and productivity.In Chapter 2.1, Diego Molano Vega, Minister ofInformation and Communication Technologies ofColombia, identifies the four obstacles to achieving thexvi | The Global Information Technology Report Report 2013Executive Summary@ 2013 World Economic Forum
  18. 18. widespread use of the Internet in his country: (1) peopleand businesses do not perceive the Internet as useful;(2) the costs of installing the necessary infrastructureare high; (3) the state has limited resources to invest ininfrastructure; and (4) Colombians’ purchasing power islimited.To achieve widespread Internet use, Plan Vive Digitalhas defined some concrete goals for the year 2014:1. Triple the number of municipalities connected tothe information highway. The aim is to extend theinfrastructure to connect 1,053 of the country’smunicipalities to the national fiber-optic network.2. Connect 50 percent of micro-enterprises andsmall- and medium-sized enterprises, and 50percent of homes to the Internet.3. Increase the number of Internet connectionsfourfold. By 2014, we want to reach 8.8 millionInternet connections.Vive Digital aims to develop the country’s digitalenvironment through its four principal components by:1. expanding the infrastructure,2. creating new services at lower prices,3. developing digital applications and contents, and4. fostering ICT adoption and use.The main goal is to establish a virtuous circle thatcan act as a method of feedback, in which a betterinfrastructure will allow more and better services at lowerprices and also stimulate the development of content,applications, and demand.The Metamorphosis to a Knowledge-Based Society:RwandaChapter 2.2, by Alex Ntale from the Rwanda ICTChamber and Private Sector Federation, AtsushiYamanaka from the Rwanda Development Board-ICT/Japan International Cooperation Agency, and DidierNkurikiyimfura from Rwanda’s Ministry of Youth and ICT,present Rwanda’s remarkable journey from an agrarianeconomy to a knowledge-based one that has put thecountry at the forefront of the region in terms of ICTs.Rwanda’s economy has continued to grow atcomparably good rates, averaging 8 percent per annum,despite a global recessionary environment starting in2008 and containing high inflationary pressures. Thisgrowth in such adverse circumstances can be attributedto good governance, sound fiscal discipline, and thecommitment from both the public and private sector tobuild a more equitable country.In the World Bank’s Doing Business 2012 report,Rwanda is ranked number one in East Africa withrespect to starting up a business, registering property,protecting investors’ interests, enforcing contracts, andobtaining access to credit. The Global CompetitivenessReport 2012–2013 published by the World EconomicForum ranked Rwanda the most competitive economy inthe East Africa Community (EAC) countries and third insub-Saharan Africa. Rwanda also received top ranking inEast Africa, and 7th in Africa among countries with activemobile-broadband subscriptions per 100 inhabitantsin 2011 in the United Nations Broadband Commissionreport.In many respects, this progress has come as aresult of visionary leadership and good governancepractices that have been embraced by Rwanda’sleaders. Rwanda has systematically fought corruption,which is one of the biggest impediments to developmentin Africa and everywhere in the world.In its Vision 2020, developed in 2000, Rwandaset out on a journey to becoming a knowledge-basedeconomy. To this end, the government integrated ICTsinto its Vision 2020 to enable the country to leapfrog thekey stages of industrialization and transform its agro-based economy into a service-oriented, information-richand knowledge-based one that is globally competitive.This integration came in the form of its national ICTstrategy and plan, commonly known as the NationalInformation Communication Infrastructure Plan (NICIPlan), which Rwanda adopted in 2000 as an approachto use ICTs holistically for development. Each five-yearphase (the NICI Plan includes four five-year phasesspanning 20 years) characterizes this strategy and isaligned with the country’s overall development goals andvision.The plan, now in its third phase, has delivereda number of successes. These include a nationwidefiber-optic backbone network, a state-of-the art tier 3data center, 96 percent cell phone/data coverage, andmultipurpose community tele-centers, to mention but afew of the plan’s successes.E-Government in Latin America: A Review of theSuccess in Colombia, Uruguay, and PanamaAlthough Latin America entered in the 21st centurywith abundant initiatives aimed at introducing ICTsin the public sector, as evidenced by the numerouse-government solutions documented by the excelGovAwards, very few countries have been able to maintaina rhythm of progress comparable to the most advancednations in the world. Colombia, Uruguay, Panama, Chile,and occasionally Mexico and Brazil, have occupied aplace among the top 50 e-government countries in themost recognized worldwide rankings.Chapter 2.3, by Miguel A. Porrúa from theOrganization of American States, looks at three LatinAmerican countries—Colombia, Uruguay, and Panama—and charts their respective paths to achieving success inestablishing ICTs in public administration, and identifiessome of their common elements.The Global Information Technology Report Report 2013 | xviiExecutive Summary@ 2013 World Economic Forum
  19. 19. For the past five years, Colombia, Uruguay,and Panama have seen progress that not onlybecomes empirical proof of the validity of most of therecommendations made by e-government authors andpractitioners but also positions these three countries asa valuable reference for others around the world.The three have built their success upon solidpolitical support that comes from the highest office, thepresidential, and goes to the next level, the ministerial.In all three countries, presidents have shown theircommitment not just with words but with actions.Presidential decrees have sent an unmistakablemessage to citizens and government officers alike abouttheir unwavering commitment to bringing ICTs to thepublic administration.Usually, an immediate consequence of thatpolitical support is the availability of financial resourcesto undertake the main initiatives. Unfortunately, LatinAmerica offers numerous examples of fruitless, well-designed e-government plans that, years after launching,are still waiting to see some financial investment thatwould allow the projects to be implemented. AlthoughColombia, Uruguay, and Panama could have donemore in providing funding to e-government initiatives,they clearly understood that nice documents with nobacking money produce no results. Smartly usinginternational cooperation and public-private partnerships,they managed to allocate financial resources to theire-government plans every year.The virtuous triangle of success in these threecountries adds another vertex in the careful attentionpaid to human resources. The systematic investmentin the qualification of government officers as well asa carefully designed institutional framework allowedColombia, Uruguay, and Panama to advance morequickly than other countries in the region.Other ingredients, such as the operational autonomyof AGESIC in Uruguay and AIG in Panama; theappropriation office in Colombia; the strong IT sector inUruguay; the international cooperation in Panama; theimplication of the private sector in Colombia; and thecommitment of three, well-qualified champions in thethree countries added the necessary spice to a recipemade of the best ingredients: political support, financialbacking, and qualified human resources.PARTS 3 AND 4: COUNTRY/ECONOMY PROFILESAND DATA PRESENTATIONParts 3 and 4 feature comprehensive profiles for eachof the 144 economies covered in this year’s Reportand data tables for each of the 54 variables composingthe NRI, with global rankings. Each part begins with adescription of how to interpret the data provided.Technical notes and sources, included at the endof Part 4, provide additional insight and informationon the definitions and sources of specific quantitativenon-Survey data variables included in the NRIcomputation this year.NOTES 1 Jipp 1963. 2 See World Economic Forum 2012. 3 See the European Commission’s Digital Agenda, available athttp://ec.europa.eu/digital-agenda/. 4 See http://www.summit-americas.org/default_en.htm. 5 The authors have estimated the GDP and employment impactcaused by the increased digitization in most countries andaggregated to get the global impact.REFERENCESITU (International Telecommunication Union). 2012. WorldTelecomunication/ICT Indicators Database (December 2012edition.) Available at http://www.itu.int/ITU-D/ict/publications/world/world.html.Jipp, A. 1963. “Wealth of Nations and Telephone Density.”Telecommunications Journal (July): 199–201.Katz, R. 2012. The Impact of Broadband on the Economy: Researchto Date and Policy Issues. ITU Broadband Series, April. Geneva:ITU. Available at http://www.itu.int/ITU-D/treg/broadband/ITU-BB-Reports_Impact-of-Broadband-on-the-Economy.pdf.World Economic Forum. 2012. The Global Competitiveness Report2012–2013. Geneva: World Economic Forum. Available at www.weforum.org/gcr.xviii | The Global Information Technology Report Report 2013Executive Summary@ 2013 World Economic Forum
  20. 20. The NetworkedReadiness IndexRankings@ 2013 World Economic Forum
  21. 21. @ 2013 World Economic Forum
  22. 22. The Global Information Technology Report Report 2013 | xxiThe Networked Readiness Index 2013 2012 rank Rank Country/Economy Score (out of 142) 1 Finland 5.98 3 2 Singapore 5.96 2 3 Sweden 5.91 1 4 Netherlands 5.81 6 5 Norway 5.66 7 6 Switzerland 5.66 5 7 United Kingdom 5.64 10 8 Denmark 5.58 4 9 United States 5.57 8 10 Taiwan, China 5.47 11 11 Korea, Rep. 5.46 12 12 Canada 5.44 9 13 Germany 5.43 16 14 Hong Kong SAR 5.40 13 15 Israel 5.39 20 16 Luxembourg 5.37 21 17 Iceland 5.31 15 18 Australia 5.26 17 19 Austria 5.25 19 20 New Zealand 5.25 14 21 Japan 5.24 18 22 Estonia 5.12 24 23 Qatar 5.10 28 24 Belgium 5.10 22 25 United Arab Emirates 5.07 30 26 France 5.06 23 27 Ireland 5.05 25 28 Malta 4.90 26 29 Bahrain 4.83 27 30 Malaysia 4.82 29 31 Saudi Arabia 4.82 34 32 Lithuania 4.72 31 33 Portugal 4.67 33 34 Chile 4.59 39 35 Cyprus 4.59 32 36 Puerto Rico 4.55 36 37 Slovenia 4.53 37 38 Spain 4.51 38 39 Barbados 4.49 35 40 Oman 4.48 40 41 Latvia 4.43 41 42 Czech Republic 4.38 42 43 Kazakhstan 4.32 55 44 Hungary 4.29 43 45 Turkey 4.22 52 46 Panama 4.22 57 47 Jordan 4.20 47 48 Montenegro 4.20 46 49 Poland 4.19 49 50 Italy 4.18 48 51 Croatia 4.17 45 52 Uruguay 4.16 44 53 Costa Rica 4.15 58 54 Russian Federation 4.13 56 55 Mauritius 4.12 53 56 Azerbaijan 4.11 61 57 Brunei Darussalam 4.11 54 58 China 4.03 51 59 Mongolia 4.01 63 60 Brazil 3.97 65 61 Slovak Republic 3.95 64 62 Kuwait 3.94 62 63 Mexico 3.93 76 64 Greece 3.93 59 65 Georgia 3.93 88 66 Colombia 3.91 73 67 Macedonia, FYR 3.89 66 68 India 3.88 69 69 Sri Lanka 3.88 71 70 South Africa 3.87 72 71 Bulgaria 3.87 70 72 Trinidad and Tobago 3.87 60 2012 rank Rank Country/Economy Score (out of 142) 73 Ukraine 3.87 75 74 Thailand 3.86 77 75 Romania 3.86 67 76 Indonesia 3.84 80 77 Moldova 3.84 78 78 Bosnia and Herzegovina 3.80 84 79 Seychelles 3.80 n/a 80 Egypt 3.78 79 81 Cape Verde 3.78 81 82 Armenia 3.76 94 83 Albania 3.75 68 84 Vietnam 3.74 83 85 Jamaica 3.74 74 86 Philippines 3.73 86 87 Serbia 3.70 85 88 Rwanda 3.68 82 89 Morocco 3.64 91 90 Dominican Republic 3.62 87 91 Ecuador 3.58 96 92 Kenya 3.54 93 93 El Salvador 3.53 103 94 Lebanon 3.53 95 95 Ghana 3.51 97 96 Botswana 3.50 89 97 Liberia 3.48 n/a 98 Gambia, The 3.47 101 99 Argentina 3.47 92 100 Guyana 3.45 90 101 Iran, Islamic Rep. 3.43 104 102 Guatemala 3.42 98 103 Peru 3.39 106 104 Paraguay 3.37 111 105 Pakistan 3.35 102 106 Cambodia 3.34 108 107 Senegal 3.33 100 108 Venezuela 3.33 107 109 Honduras 3.32 99 110 Uganda 3.30 110 111 Namibia 3.29 105 112 Tajikistan 3.29 114 113 Nigeria 3.27 112 114 Bangladesh 3.22 113 115 Zambia 3.19 109 116 Zimbabwe 3.17 124 117 Suriname 3.13 121 118 Kyrgyz Republic 3.09 115 119 Bolivia 3.01 127 120 Côte d’Ivoire 3.00 122 121 Gabon 2.97 n/a 122 Mali 2.97 126 123 Benin 2.97 117 124 Cameroon 2.95 125 125 Nicaragua 2.93 131 126 Nepal 2.93 128 127 Tanzania 2.92 123 128 Ethiopia 2.85 130 129 Malawi 2.83 116 130 Burkina Faso 2.80 135 131 Algeria 2.78 118 132 Libya 2.77 n/a 133 Mozambique 2.76 120 134 Timor-Leste 2.72 132 135 Mauritania 2.71 139 136 Swaziland 2.69 136 137 Madagascar 2.69 134 138 Lesotho 2.68 133 139 Yemen 2.63 141 140 Guinea 2.61 n/a 141 Haiti 2.58 142 142 Chad 2.53 138 143 Sierra Leone 2.53 n/a 144 Burundi 2.30 137@ 2013 World Economic Forum
  23. 23. @ 2013 World Economic Forum
  24. 24. Part 1The CurrentNetworked Readinessfor Growth and Jobs@ 2013 World Economic Forum
  25. 25. @ 2013 World Economic Forum
  26. 26. The Global Information Technology Report 2013 | 3CHAPTER 1.1The Networked ReadinessIndex 2013: BenchmarkingICT Uptake and Supportfor Growth and Jobs in aHyperconnected WorldBEÑAT BILBAO-OSORIO, World Economic ForumSOUMITRA DUTTA, Cornell UniversityTHIERRY GEIGER, World Economic ForumBRUNO LANVIN, INSEADWhen The Global Information Technology Report (GITR)and the Networked Readiness Index (NRI) were createdsome 12 years ago, the attention of decision makersand investors was on adopting business and financialstrategies that would allow them to develop in thecontext of a fast-moving but nascent Internet economy.Over more than a decade, the NRI has provideddecision makers with a useful conceptual framework toevaluate the impact of information and communicationtechnologies (ICTs) at a global level, and to benchmarkthe ICT readiness and the usage of their economies.Today, the world has undergone massive changes:the Internet bubble has come and gone, and emergingcountries such as China and India have becomeprominent global providers and users of ICT equipmentand services. Struggling to emerge from the financialcrisis, developed economies are striving to return tohigher levels of growth and competitiveness whilefighting stubbornly high unemployment rates, especiallyamong their youth. Both emerging and developedeconomies are focusing on innovation, competingglobally for talent, resources, and market shares.Information flows and networks have spread acrossborders in ways that could not be imagined before theonset of the Internet, the global adoption of mobiletelephony and social networks, and the rapid growth ofbroadband. Business models have been redefined, theworkplace has been redesigned, small startups haveevolved into large companies, and entire functions ofsociety (education, health, security, privacy) are beingrethought.ICTS, COMPETITIVENESS, GROWTH, AND JOBS: ACOMPLEX RELATIONSHIPThe links between ICTs (their tools, services, and models)on the one hand and the unwavering importance ofcompetitiveness, growth, and jobs on the other havenever before been the subject of so much attention andconcern. This is hardly surprising when one considersthe “pull” of technology: developed economies needto reinvent themselves to maintain or restore theircompetitiveness, retain or regain market shares, andcreate jobs; emerging and developing economies areseeking ways to improve productivity and find newsources of growth through new technologies. Finally,the world needs to collectively address environmentaland social challenges to ensure a more sustainabledevelopment path and a better quality of life for itspeople.On the “push” side, technological progresscontinues at a relentless speed. The growing availabilityof technology has empowered citizens of both developedand emerging economies with fairly good access to thedigital world. The rise of cloud computing has reducedthe competitive differentials in technology availabilityacross larger and smaller firms. Low entry barriers in the@ 2013 World Economic Forum
  27. 27. Chapter 1.1: The Networked Readiness Index 20134 | The Global Information Technology Report 2013digital space have sparked creativity and given rise to aclass of young entrepreneurs around the world. It is clearthat ICTs offer higher benefit-to-cost ratios in all sectorsof production, while simultaneously offering new ways tocreate value by better and more efficiently organizing theuse of natural, financial, and human resources.Numerous studies have been presented in theliterature on the connections between ICTs on theone hand, and development and growth on the other.Although the first analyses of the economic impactof fixed telephone density on economic growth wereconducted more than three decades ago,1such studieshave proliferated in recent years. Despite the ubiquityof ICTs in society and business, such research hasnot been easy. For one thing, the pace of adoption ofmany technologies (broadband, mobile, etc.) has beenfast and recent—thus limiting the validity of longitudinalstudies and making it difficult for data collectionagencies to keep pace with the definition and collectionof appropriate metrics. Also, it remains challenging toisolate the impact of ICT as its economic impacts haveoften occurred when combined with other broad socialand business changes.A recent ITU report summarizes the overall findingsfrom current research on the economic impact ofbroadband:First, broadband exhibits a higher contribution toeconomic growth in countries that have a higheradoption of the technology (this could be labelled the“critical mass” or “return to scale” theory). Second,broadband has a stronger productivity impact insectors with high transaction costs, such as financialservices, or high labor intensity, such as tourism andlodging. Third, in less-developed regions, as postulatedin economic theory, broadband enables the adoptionof more efficient business processes and leads tocapital-labour substitution and, therefore, loss of jobs(this could be labelled the “productivity shock theory”).Fourth, the impact of broadband on small and mediumenterprises takes longer to materialize due to the need torestructure the firms’ processes and labor organizationin order to gain from adopting the technology (this iscalled “accumulation of intangible capital”). Finally, theeconomic impact of broadband is higher when promotionof the technology is combined with stimulus of innovativebusinesses that are tied to new applications. In otherwords, the impact of broadband is neither automatic norhomogeneous across the economic system.2The concluding sentence above is important andgenerally valid for most other analyses of the economicimpact of ICTs on development and growth. This inno way negates either the economic impact of ICTs orthe studies thereof. Rather, it highlights the valuablecontribution of comprehensive models of ICT usage andimpact such as the Networked Readiness Index (NRI).The ITU report concludes that “this emphasizes theimportance of implementing public policies not only inthe areas of telecommunications regulation, but also ineducation, economic development and planning, scienceand technology and others.”3For more than a decade, the NRI has includedaspects of the ways ICTs are transforming the economyand society. Among the expressions of transformationis the development of new skills that are important inknowledge-based, information-rich societies and thatare crucial for employment. Despite the fact that ICTs arebecoming increasingly universal, the question of accessand usage remains important—especially for developingcountries, given their need to narrow the digital divide.The NRI includes features related to access and usagethat cover not only affordable ICT infrastructure butalso digital resources, including software and skills. Inaddition, the NRI includes proxies for assessing someof the economic and social impacts accruing from ICTs.Thus, the Index facilitates the identification of areaswhere policy intervention—through investment, smartregulation, and/or incentives—could boost the impact ofICTs on development and growth.THE NETWORKED READINESS FRAMEWORK: AHOLISTIC APPROACH TO MEASURE ICT ACCESSAND IMPACTSGiven the potential high returns that ICTs can providein transforming a nation’s economy and its citizens’well-being, assessing ICT developments has been theobject of much academic and policy attention in the pastdecade. Several organizations have made significantefforts to measure and benchmark ICT deploymentand uptake, but few have aimed at equally assessingthe returns that ICTs can actually provide to both theeconomy and society. Although data availability isstill scarce in terms of ICT impacts, policy interest inmeasuring ICTs has shifted from measuring ICT accessto measuring ICT impacts.Last year, after two years of research andconsultations with ICT practitioners, policy and industryexperts, and academia, the NRI introduced a newsubindex on ICT impacts that aimed at holisticallyassessing the way that countries go about leveragingICTs and benefiting from them in terms of enhancedcompetitiveness and well-being. This evolution ensuresthat the NRI framework remains at the forefront ofICT measurement. As one of the most authoritativeassessments of its kind, it has been adopted by severalgovernments as a valuable tool for informing theircompetitiveness and policy agendas.The design of the framework for the calculation ofthe NRI (Figure 1) has been guided by five principles:@ 2013 World Economic Forum
  28. 28. The Global Information Technology Report 2013 | 5Chapter 1.1: The Networked Readiness Index 20131. Measuring the economic and social impactsof ICTs is crucial. The NRI must includeaspects of the way ICTs are transforming boththe economy and society. In the economy ofseveral countries, the ICT industry has becomeincreasingly important and now accounts for asignificant share of value-added and employment.In addition, ICTs interact closely with many othersectors, thus enabling innovations to accrue andaffecting productivity. Moreover, the impacts ofICTs are also evident in the development of newskills that are important in knowledge-based,information-rich societies and that are crucial foremployment. In society, ICTs allow citizens toparticipate more actively and steadily in socialand political debates and make the governmentmore accountable. They improve access to betterand faster services, which, in turn, yield importantbenefits.2. An enabling environment determines thecapacity of an economy and society to benefitfrom the use of ICTs. The success of a countryin leveraging ICTs and achieving the desiredeconomic and social benefits will depend on itsoverall environment—including market conditions,the regulatory framework, and innovation-prone conditions—to boost innovation andentrepreneurship.3. ICT readiness and usage remain key driversand preconditions for obtaining any impacts.Despite the increasing availability of ICTs,the question of access and usage remainsimportant especially for developing countries,given their need to narrow the digital divide.Even within developed nations, the need toprovide high-speed broadband to all segmentsof the population has acquired importance inrecent years. Some features of the NRI arerelated to access and usage; these cover notonly affordable ICT infrastructure but also digitalresources, including software and skills. Moreover,ICT impacts can arise only if ICTs are widely usedby all key actors—individuals, businesses, andgovernments. It is a society-wide effort. Thoseactors demonstrating better preparedness andgreater interest are likely to use ICT more andmore effectively, contributing to a greater impacton competitiveness and development.4. All factors interact and co-evolve within anICT ecosystem. Those societies that can counton better-prepared actors and an enablingenvironment are more likely to benefit from higherrates of ICT use and impacts. At the same time,those societies that benefit from higher ratesof ICT use and positive impacts will, in turn, bemore likely to benefit from a push on the part ofthe different stakeholders to be better preparedand keep improving the framework conditionsthat will allow for more and stronger benefitsto accrue. As a result, a virtuous circle starts,where improvements in one area affect and driveimprovements in other areas. Conversely, lags inone particular factor also affect the evolution ofthe other factors.InfrastructureAffordability SkillsIndividualEnvironmentDRIVERSBusiness GovernmentIMPACTSEconomicSocialReadiness UsageFigure 1: The Networked Readiness Index framework@ 2013 World Economic Forum
  29. 29. Chapter 1.1: The Networked Readiness Index 20136 | The Global Information Technology Report 20135. The framework should provide clear policyorientations and identify opportunitiesfor public-private collaboration. The NRIfacilitates the identification of areas wherepolicy intervention—through investmentincluding public-private partnerships, smartregulation, or the provision of incentives—couldboost the impacts of ICTs. This is importantbecause the development and general uptakeof ICTs depend on the capacity of a country toprovide an institutional framework with reliableand efficient rules and regulations; favorablebusiness conditions for the founding and growthof new (social and commercial) enterprises;an innovation-prone environment, capable ofdeveloping and absorbing new knowledge; andan ICT-friendly government policy.ELEMENTS OF THE NETWORKED READINESSINDEXThe networked readiness framework translates intothe NRI, comprising four subindexes that measure theenvironment for ICTs; the readiness of a society to useICTs; the actual usage of all main stakeholders; and,finally, the impacts that ICTs generate in the economyand in society. The three first subindexes can beregarded as the drivers that establish the conditions forthe results of the fourth subindex, ICT impacts. Thesefour subindexes are divided into 10 pillars composed of54 individual indicators in total, according to the followingstructure (see also Figure 2):A. Environment subindex1. Political and regulatory environment2. Business and innovation environmentB. Readiness subindex3. Infrastructure and digital content4. Affordability5. SkillsC. Usage subindex6. Individual usage7. Business usage8. Government usageD. Impact subindex9. Economic impacts10. Social impactsThe final NRI score is a simple average of the fourcomposing subindex scores, while each subindex’sscore is a simple average of those of the composingpillars. In doing this, we assume that all NRI subindexesThe NetworkedReadiness IndexReadiness AffordabilityInfrastructure and digital contentSkillsBusiness usageIndividual usageGovernment usageUsageBusiness and innovation environmentPolitical and regulatory environmentEnvironmentSubindexes PillarsSocial impactsEconomic impactsImpactFigure 2: The Networked Readiness Index structure@ 2013 World Economic Forum
  30. 30. The Global Information Technology Report 2013 | 7Chapter 1.1: The Networked Readiness Index 2013make a similar contribution to networked readiness.Appendix A includes detailed information on thecomposition and computation of the NRI 2013, while webriefly describe the different subindexes below.Environment subindexThe environment subindex gauges the friendlinessof a country’s market and regulatory framework insupporting high levels of ICT uptake and the emergenceof entrepreneurship and innovation-prone conditions. Asupportive environment is necessary to maximize thepotential impacts of ICTs in boosting competitivenessand well-being. It includes a total of 18 variablesdistributed into two pillars.The political and regulatory environment pillar(composed of nine variables) assesses the extentto which the national legal framework facilitates ICTpenetration and the safe development of businessactivities, taking into account general features of theregulatory environment (including the protection affordedto property rights, the independence of the judiciary, andthe efficiency of the law-making process) as well as moreICT-specific dimensions (the passing of laws related toICTs and software piracy rates).The business and innovation environment pillar (ninevariables) gauges the quality of the business frameworkconditions to boost entrepreneurship, taking into accountdimensions related to the ease of doing business(including the presence of red tape and excessive fiscalcharges). This pillar also measures the presence ofconditions that allow innovation to flourish by includingvariables on the overall availability of technology, thedemand conditions for innovative products (as proxiedby the development of government procurement ofadvanced technology products), the availability of venturecapital for financing innovation-related projects, and thepresence of a skilled labor force.Readiness subindexThe readiness subindex, with a total of 12 variables,measures the degree to which a society is prepared tomake good use of an affordable ICT infrastructure anddigital content.The infrastructure and digital content pillar (fivevariables) captures the development of ICT infrastructure(including mobile network coverage, international Internetbandwidth, secure Internet servers, and electricityproduction) as well as the accessibility of digital content.The affordability pillar (three variables) assesses thecost of accessing ICTs, either via mobile telephony or fixedbroadband Internet, as well as the level of competition inthe Internet and telephony sectors that determine this cost.The skills pillar (four variables) gauges the abilityof a society to make effective use of ICTs thanks tothe existence of basic educational skills captured bythe quality of the educational system, the level of adultliteracy, and the rate of secondary education enrollment.Usage subindexThe usage subindex assesses the individual efforts ofthe main social agents—that is, individuals, business,and government—to increase their capacity to use ICTsas well as their actual use in their day-to-day activitieswith other agents. It includes 16 variables.The individual usage pillar (seven variables)measures ICT penetration and diffusion at the individuallevel, using indicators such as the number of mobilephone subscriptions, individuals using the Internet,households with a personal computer (PC), householdswith Internet access, both fixed and mobile broadbandsubscriptions, and the use of social networks.The business usage pillar (six variables) captures theextent of business Internet use as well as the efforts ofthe firms in an economy to integrate ICTs into an internal,technology-savvy, innovation-conducive environment thatgenerates productivity gains. Consequently, this pillarmeasures the firm’s technology absorption capacity aswell as its overall capacity to innovate and the productionof technology novelties measured by the number ofPatent Cooperation Treaty (PCT) patent applications.It also measures the extent of staff training available,which indicates the extent to which managementand employees are more capable of identifying anddeveloping business innovations. New this year, we havesplit the e-commerce variable from previous editions todistinguish the business-to-business dimension fromthe business-to-consumer one, as some noticeabledifferences between the two dimensions exist in severalcountries.The government usage pillar (three variables)provides insights into the importance that governmentsplace on carrying out ICT policies for competitivenessand to enhance the well-being of their citizens, theefforts they make to implement their visions for ICTdevelopment, and the number of government servicesthey provide online.Impact subindexThe impact subindex gauges the broad economicand social impacts accruing from ICTs to boostcompetitiveness and well-being and that reflect thetransformations toward an ICT- and technology-savvyeconomy and society. It includes a total of eightvariables.The economic impacts pillar (four variables)measures the effect of ICTs on competitiveness thanksto the generation of technological and non-technologicalinnovations in the shape of patents, new products orprocesses, and organizational practices. In addition, italso measures the overall shift of an economy towardmore knowledge-intensive activities.@ 2013 World Economic Forum
  31. 31. Chapter 1.1: The Networked Readiness Index 20138 | The Global Information Technology Report 2013The social impacts pillar (four variables) aims atassessing the ICT-driven improvements in well-beingthanks to their impacts on the environment, education,energy consumption, health progress, or more-activecivil participation. At the moment, because of datalimitations, this pillar focuses on measuring the extent towhich governments are becoming more efficient in theuse of ICTs and providing increasing online services totheir citizens, and thus improving their e-participation.It also assess the extent to which ICTs are present ineducation, as a proxy for the potential benefits that areassociated with the use of ICTs in education.In general, measuring the impacts of ICTs isa complex task, and the development of rigorousquantitative data to do so is still in its infancy. As a result,many of the dimensions where ICTs are producingimportant impacts—especially when these impacts arenot translated into commercial activities, as is the casefor the environment and for health—cannot be coveredyet. Therefore this subindex should be regarded as awork in progress that will evolve to accommodate newdata on many of these dimensions as they becomeavailable.COMPUTATION METHODOLOGY AND DATAIn order to capture as comprehensively as possible allrelevant dimensions of societies’ networked readiness,the NRI 2013 is composed of a mixture of quantitativeand survey data, as shown in Figure 3.Of the 54 variables composing the NRI this year, 27are quantitative data, collected primarily by internationalorganizations such as International TelecommunicationUnion (ITU), the World Bank, and the United Nations.International sources ensure the validation andcomparability of data across countries.The remaining 27 variables capture aspects thatare more qualitative in nature or for which internationallycomparable quantitative data are not available for a largeenough number of countries, but that nonetheless arecrucial to fully measure national networked readiness.These data come from the Executive Opinion Survey (theSurvey), which the Forum administers annually to over15,000 business leaders in all economies included inthe Report.4The Survey represents a unique source ofinsight on many critical aspects related to the enablingenvironment, such as the effectiveness of law-makingbodies and the intensity of local competition; to ICTreadiness, such as the quality of the educational systemand the accessibility of digital content; to ICT usage,such as capacity to innovate and the importance ofgovernment vision for ICTs; and to impact, such as theimpact of ICTs on developing new products and servicesand improving access to basic services.The NRI’s coverage every year is determined bythe Survey coverage and data availability for indicatorsobtained from other sources, mostly internationalorganizations. This year the Report includes 144economies, two more than in the 2012 edition. Fivenew countries are included: Gabon, Guinea, Liberia,Seychelles, and Sierra Leone. Libya was re-includedafter a year of absence. Three previously coveredcountries had to be excluded from this year’s Report:Figure 3: Breakdown of indicators used in the Networked Readiness Index 2013 by data sourceTOTAL: 54 INDICATORSINDICATORS FROMOTHER SOURCES27 INDICATORS(50%)EXECUTIVE OPINIONSURVEY27 INDICATORS(50%)@ 2013 World Economic Forum
  32. 32. The Global Information Technology Report 2013 | 9Chapter 1.1: The Networked Readiness Index 2013Survey data could not be collected in Belize or Angola;in Syria, the political situation did not allow the Surveyto be carried out. In the case of Tunisia, we decidednot to report the results this year because an importantstructural break in the data makes comparisons withpast years difficult. We hope to re-include thesecountries in the future.More details on variables included in the Index andtheir computation can be found in Appendix A and in theTechnical Notes and Sources section at the end of theReport.THE CURRENT NETWORKED READINESSLANDSCAPE: INSIGHTS FROM THE NRI 2013This section provides an overview of the networkedreadiness landscape of the world as assessed bythe NRI 2013. It It presents the results of the top10 performers and selected countries by region, inthe following order: Europe and the Commonwealthof Independent States, Asia and the Pacific, LatinAmerica and the Caribbean, sub-Saharan Africa, andthe Middle East and North Africa. Tables 1 through 5report the 2013 rankings for the overall NRI, its foursubindexes, and its ten pillars. In addition, the Country/Economy Profiles and Data Tables sections at the endof the Report present the detailed results for the 144economies covered by the study and the 54 indicatorscomposing the NRI. To complement the analysis of theresults, Box 1 discusses the persisting new digital divideacross and within regions as revealed by the NRI results,and Box 2 examines increasing returns to ICT, skills, andinnovation investment and suggests that an investmentthreshold in these three areas may exist and thatwithout reaching it, the return may be negligible. Finally,Appendix A of the present chapter details the structureof the NRI and describes the method of calculation.TOP 10Two groups of economies dominate the top ranks of theNRI: Northern European economies and the so-calledAsian Tigers. Among the Northern European countries,four of the five Nordic economies represented inthe NRI—Finland, Sweden, Norway, and Denmark (inrank order)—continue to feature in the top 10. Iceland,the last of the Nordics, is not too far behind, at 17thplace (see Table 1). The performance of this group interms of readiness is particularly outstanding. All fiveNordics feature in the top 10 of this subindex. Withinthis subindex, on the infrastructure and digital contentpillar, four countries occupy the top positions. Overall,the four Nordic economies, the Netherlands, and theUnited Kingdom comprise no less than six NorthernEuropean countries among the top 10. As highlightedin the previous edition and elsewhere in this Report,the gap between those countries and the ones in theSouthern and Eastern parts of Europe is profound. Asecond group of economies that posts a remarkableperformance is the Asian Tigers: Singapore, Taiwan(China), the Republic of Korea, and Hong Kong SAR.The latter, the lowest-ranked of the four, comes in at 14thplace. All boast outstanding business and innovationenvironments that are consistently ranked among themost conducive in the world. The Tigers also stand outfor their governments’ leadership in promoting the digitalagenda, and the impact of ICTs on society tends to belarger in these economies.Overtaking Singapore and neighboring Sweden,Finland (1st) reaches the top of the NRI rankings forthe first time, thanks to improvements across theboard. The country shows progress on two-thirds ofthe 54 indicators of the NRI and posts a very consistentperformance across all categories of the NRI. Finlandappears in the top three of each of the four subindexesand in the top 10 of nine of the 10 pillars, toppingtwo (skills and economic impacts). Among the 144economies, only Sweden achieves as impressive alevel of excellence and consistency. Finland’s lowestrank among the 10 pillars is its 19th position in theaffordability pillar, which can hardly be considered aweakness given that, among high-income countries,ICT services in Finland are among the most affordable(it comes in 5th, with Iceland and Sweden leadingthe category). As set out in the government’s DigitalAgenda for 2011–2020, Finland has set in motion avirtuous digital circle offering exceptionally conduciveinstitutional (3rd) and business (7th) environments, world-class infrastructure (2nd), and arguably one of the besteducational systems in the world. As a result, ICTs areubiquitous and penetration rates are among the highestglobally. Ninety percent of households are equippedwith a computer and 90 percent of the population usethe Internet, mostly at broadband speeds. Finland is aninnovation hub, boasting the world’s highest numberof PCT applications per capita in the domain of ICTs,and the third highest when considering all domains.But the impact of ICTs extends well beyond innovation,permeating the entire economy and society. Forinstance, Finland ranks 1st on the indicator capturing theextent to which ICTs create new services and products.Singapore remains 2nd overall, while slightlyimproving its score. The city-state ranks 1st in a recordfour pillars, while Finland leads only two. Singaporeshows the way in the environment subindex, earning thetop spot in both the political and regulatory environmentpillar and the business and innovation environmentpillar. The extreme efficiency and business friendlinessof its institutional framework, strong intellectual propertyprotection, intense competition, and high universityenrollment rate lead to these outstanding outcomes.Singapore’s readiness (11th) is also world class, thanksto its excellent digital infrastructure (19th) and skill base(2nd). The affordability of ICTs (55th) is Singapore’s@ 2013 World Economic Forum

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